No Cost Retirement Boost

A recent Financial Engines Study suggested that Americans are leaving $24 Billion on the table by not maxing out their employer's retirement match or an average of a little more than $1,300 per person. That is money that should have been ours!   In other studies, the Consumer Financial Protection Bureau estimates we are paying $34 Billion in excess fees like late fees and overdraft fees.  More money in the wrong pockets!


What would happen if we were able to operate in a world where we didn't pay such fees and took that money to boost our retirement?  Let's see.... if $24 billion averages out to $1,300 per person, then $34 billion would be around $1,850.  Right off the bat we could see a nice little boost for our retirement of $3,150!  That is free money since it didn't change your cost of living one bit and it didn't increase debt or deplete savings.  Oh, boy, I am feeling a bit rich!


Now, what would happen if I could do that every year over the next 40 years of my working career.  Using my handy dandy Excel Spreadsheet I calculate the future value of $3,150 invested each year over 40 years at 10% rate of return and presto chango... I have almost $1.4 million stashed away for my dream retirement seeing all the sights and resting with a cold drink on the beach!

Now to get there, the trick is, I need to make sure that I have a good handle on my cash flow so that I never overdraft or incur late fees on my accounts AND I need to participate in my employer's retirement plan and maximize that match!  If you need help getting started.  Bank On is here for you.  In 10 months you could see greater financial control and get yourself on a financial plan to achieve your dreams.  Now is the time to get started.  You can enroll today at www.bankonhamptonroads.com for the classes beginning soon.  Check out our calendar of classes while you are there.  Best thing; it is FREE, no cost to you, pro bono.... you get the idea!  See you soon.

College Doesn’t Have to Be a Debt Trap: 5 Tips for Reducing College Costs

Nine in ten parents believe that college is a worthwhile investment. While this statistic from Sallie Mae’s How America Saves for College 2015 report shows that the value placed on higher education is nearly universal, a staggering 84% of parents are also willing to stretch themselves financially in order to make college possible for their children. “Better we have the debt than [our children] have the debt,” Democratic presidential candidate Martin O’Malley was quoted as saying in a recent Washington Post article on student loans and parent borrowers.  

 

The increasing costs of higher education are a part of our current reality, but breaking the bank doesn’t have to be. Making smart financial decisions from the start, and turning good savings behaviors into long-lasting habits can be the ticket to a fruitful and (hopefully) debt free future – for students and parents alike.

 

5 Tips for Reducing College Costs

 

1. Start Saving as Soon as Possible – This goes for parents and prospective college kids alike. Parents can start as early as birth to save for college through popular vehicles like 529 plans and savings bonds. See how putting away small amounts of savings will build up over time and will reduce the amount of loans that have to be paid back later in this BetterMoneyHabits.com video.
2. Do Your Research – If you already have your major chosen, do some digging into what credentials are required in you major’s industry down the road and consider what your options are for getting the most bang for your buck. Not sure what you want to be when you grow up? That’s okay! Check out community colleges. These low tuition schools offer a wide variety of courses to give you options and time to define the direction of your studies, while keeping costs at a minimum. Liberal arts colleges also have a reputation for giving more generous financial aid packages with similar broad spectrum course options.
3. Save on Room & Board – Sometimes there really is no place like home. Take a moment to think about what living expenses really entail: a room to sleep in, furniture, electricity, internet, laundry, regular meals, and any variety of moving costs. Whether you’re trying to reduce student loan debt after college or trying to stretch those 529 savings accounts, living at home during school will save you thousands of dollars.
4. Work While In School –Working one (or a few) part-time job can help pay for anything from tuition to books, transportation to school supplies. Every little bit that you can earn and save before and during college will reduce the amount of loans you need to take and save you money you would pay later.
5. Know the Fine Print – When savings and free money won’t cover all the costs, student loans will inevitably step in. Whether you’re a student or parent borrower, be mindful of the debt that you take on. Scrutinizing repayment terms is critical as they can help you know how much you’ll owe after you graduate, when you’ll have to start paying on the interest and principal of your loans, and whether you’ll be eligible for any forgiveness options down the road. Get cozy with the details before you sign that promissory note.

 

Learn more about saving for college and pledge to save at AmericaSaves.org.

                                                                                                                       

Tammy Greynolds works for America Saves, managed by the nonprofit Consumer Federation of America (CFA), which seeks to motivate, encourage, and support low- to moderate-income households to save money, reduce debt, and build wealth. Learn more at AmericaSaves.org.

Investment Webinar

Investing can seem risky, complicated and scary for the beginner.  If you are interested in growing your investments, but want to learn more to get started, this webinar is for you.  Join us online or by phone!

FREE WEBINAR: AUGUST 4th, 2015  7:00 - 8:30 pm

REGISTER: email bankonvb@vbgov.com to get a link to this free webinar.

Topics Covered:

• Investing Principles
• Am I Ready to Invest
• Where to Put Your Money
• How Much Money do I Need
• Investment Options
• Diversification Techniques
• Index vs. Non Index Investing
• What is Dollar Cost Averaging
• Cost of Waiting
• Common Mistakes Made

Webinar offered in partnership with Virginia Saves and Bank On Virginia Beach as part of their commitment to the Campaign for a Secure Retirement.

REGISTER today at bankonvb@vbgov.com

Build Your Business - July

Host: The Focuss Group 4176 S. Plaza Trail RSVP: 757-631-1100

National my Social Security Week 2015 July 19 – 25, 2015

From July 19 – 25, Social Security will celebrate its second National my Social Security Week. Activities across the country will include email blasts, news articles, social media posts, posters and banners, registration events, and more!


Why all the activity? Because a personal my Social Security account is the most convenient way for people to access and manage their Social Security information online. Taking advantage of this convenient, cost-effective, and secure service allows workers to plan for their financial future and enables them to verify that their information on our records is correct. This is important since earnings are the basis for determining the amount of future retirement benefits. For people who already get Social Security benefits, my Social Security is the easiest and most convenient way to manage their benefits and get an instant benefit verification letter, change their direct deposit information, and much more.

As of April 2015, almost 19 million people have opened my Social Security accounts. In fact, someone opens a new my Social Security account every six seconds.

Join the millions and sign-up for your free my Social Security account this week. It’s the perfect time to open an account and start planning for retirement or managing your benefits online. You can sign up today at www.socialsecurity.gov/myaccount.