Asset Planning, Inc Blog

Everybody knows how important maintaining a good credit score is. Having a good credit score will get you better interest rates on home mortgages, car loans and credit cards. Landlords and even employers are looking at this number when making decisions to rent/lease to you or hire you. With credit being such an important factor in life it’s crucial that you know what your credit score is and checking your own credit score does not impact your credit. Luckily for you there are many new and free credit monitoring services out there to help you do just that. So if your credit needs a little help, don’t despair, check out these free tools to help guide you on the path to great credit!

Creditscorecard.com

Creditsesame.com

Creditkarma.com

If you choose to sign up for one of these websites they will ask you for personal information to identify yourself to verify that it is in fact you signing up. These websites are all free monitoring services and they will not ask you for any credit card information. They will however send you marketing materials with offers based on your personal information. It seems like a small price to pay in order to be able to monitor and take control of your own credit. Good luck on your journey to overall better credit health!

We recently came across an article written by Kraig Mathias with some great money saving tips and want to pass them along to you. By following these tips you can really help your bottom line and focus your extra funds towards saving for the future.

1. Get out of debt and stop borrowing money. Pay off all of your debt now and do not buy more than you can afford to pay off each month. Having no more payments means you can save that money instead.
2. Stop going shopping. While you are getting out of debt stop spending money on unnecessary stuff. You will not make any progress if you continue to spend money at the same time you are trying to pay off your credit cards. It is a vicious cycle that is hard to get out of.
3. Eat at home and eat out very little. Eating out can be extremely expensive. You will be amazed at the amount of money you can save by merely eating at home more often.
4. Make a budget each month. Once you sit down and make a budget for the month you will be able to see where all of your money is going and can cut out unnecessary spending.
5. Think about the bigger picture. Set a goal for why you are saving your money. Once you have a specific goal it will be easier to say no to that daily cup of coffee at Starbucks and make one at home.
6. Downgrade your disposable goods. You can save big time by buying the generic laundry soap instead of the name brands. They are usually just as good without the high price tag.
7. Keep your living situation modest. If you are serious about saving money living in a posh apartment or driving that expensive sports car is going to put a strain on your savings potential.
8. Learn to say no. You’ll have to learn to say no to an expensive night out with your friends. Try suggesting a low cost alternative. This is a big part in taking control of your discretionary spending.
9. Learn to be content with what you have. If you are content with what you have you will be less likely to want more. Instead of going out and buying new stuff all of the time, try saving for it and paying in cash instead of charging it. You will be more satisfied with the purchase and that you earned the new item.

Let’s admit it; our pets are part of the family. Nearly 60% of households own a pet and unlike past generations the emphasis on pets and how we treat them has drastically changed. No more leaving Fido to sleep in the backyard with a bowl of dry kibble. Instead we have begun to humanize our pets and treat them as if they were our children. The average American admits to letting them sleep in their bed, preparing fresh meals for them, buying them birthday presents, etc. There really is no better time to be a domestic pet then now and as a result, Americans are willing to spend more money on their pets and the pet industry is booming. Here are some fun facts about how the love we have for our animals is affecting consumer spending and our economy.

• US Census Bureau data reveals that since 1998 the number of pet related stores has jumped by 38%. The broad US economy has only added 8% more storefronts over the same time period.
• Industry research suggests that of the $6.3 billion Americans spent on pet services (excluding veterinary work), 38% of it was on boarding and pet sitting.
• Organic pet food grew from 11% of total US pet food sales in 2011 to 17% in 2014. If 17% does not sound impressive, consider that only 7% of domestic baby food sales are organic.
• Bureau of Labor Statistics data shows that consumers spend more annually on their pets ($1,151) than they do on car insurance ($1,112).
• In 2011, average household spending on pet food alone was $183. This was more than the amount spent on bread ($107), chicken ($124), and cereal ($175).
• US pet related employment has jumped nearly 3x from 195,000 in 1990 to 553,000 in 2015.
• Over the next ten years the Bureau of Labor Statistics forecasts have animal care and service employment up 11% and Veterinarian employment up 9%,

So keep on spoiling your furry companion! It’s not only good for him but also the economy!

*Facts and excerpts taken from “Human, Economy and Pet: How Pets Are Changing Humans and the Economy,” Payden & Rygel, Point of View, Spring 2016.

In a recent article released by AARP and written by Sid Kirchheimer, he writes about the new trends in credit card fraud. With the new chip-enabled EMV cards it is now harder for identity thieves to clone counterfeits of the existing plastic cards. Instead they are focusing on opening new fraudulent accounts with stolen Social Security numbers and other sensitive data. Javelin Strategy & Research reported in its 2016 Identity Fraud Study that new-account fraud more than doubled in 2015 from the previous year.

Here are a few tips on how to protect yourself:

1.Get a credit freeze. Once enacted, a credit (also known as a security) freeze restricts access to your credit report, which creditors check before issuing new financial or service accounts in your name. Without seeing your report, creditors won’t approve accounts to ID thieves posing as you. A freeze must be placed with each of the three major credit-reporting bureaus — typically free for those 65 and older (state laws vary) — and can be unthawed when you are legitimately applying for credit.

2.Secure mobile devices. If your financial life is on a smartphone or tablet, apply software updates that patch known vulnerabilities as soon as they become available. Use security features built into Android and iOS devices, such as passcode or biometric (fingerprint) protection, and programs that encrypt data and remotely wipe contents if the device is lost or stolen.

3.Use strong passwords. They “remain the de facto first line of defense for most online accounts, which has motivated criminals to compromise them whenever possible,” Javelin notes. Using a password manager is a convenient way to maintain good password practices without resorting to writing these codes down, which could also place them at risk of physical compromise.

4. Sign up for account alerts. Offered by banks, credit card issuers and brokerages, these free notifications, via email or text message, provide you with real-time alerts of suspicious activity. When fraud occurs, contact the account issuer immediately.

5.Take data breach notifications seriously. One in 5 data-breach victims suffered fraud in 2015, up from 1 in 7 in 2014. While data breaches at retailers remain an issue, the biggest jump in breaches was at government agencies and health care organizations, with a 64 percent rise in exposure of SSNs.

Asset Planning will be having an Open House on Wednesday, June 29th from 4pm-8pm. There will be wine tasting and hors d’oeuvres. Look for an invitation with all of the details coming your way soon!

As soon as I finish my taxes I also do some spring cleaning of my paperwork clutter and finances. Here are some tips to get your financial house in shape:

1. Organize financial papers: Do not leave financial documents around that contain information that could be used to steal your identity. Shred paperwork you no longer need. Save important papers in a secure place and if possible, digitally (scan and save on external drive/usb, etc.) and secure with a password.

2. Bills, paystubs, bank and investment statements should be kept for one year and then just keep the year end summaries and shred the rest.

3. Keep invoices and all bills for major repairs, improvements and construction on your home. This is vital to have when and if you ever sell your home for increased cost basis.

4. Tax returns and all supporting documentation should be kept for at least 7 years. A good rule is to scan your older tax returns and keep them forever.

5. Run your credit report to see if there are any unusual transactions. Annualcreditreport.com allows one free report per agency per year.

6. Automate adding to investments and savings.

7. Adjust tax withholdings on your income (paycheck, IRA’s, etc.) if you owed too much tax or received a large refund.

The April 18^th deadline to file your tax return is right around the corner. In your rush to meet the deadline we would like to remind you that it’s not too late to contribute to your IRA to receive the tax benefit.  The current funding limit is $5,500 for those under 50 and $6,500 for people 50 and over. Even if you participate in a plan at work you may still contribute, you will not receive the tax deduction but the earnings will grow tax free until you are required to take a distribution – over age 70 1/2. . If you have been thinking about opening an IRA to supplement your retirement there is no better time than the present to get one started. Please contact your advisor to determine which type of IRA would best suit your financial needs.

TD Ameritrade issued an alert today that they have seen an uptick in fraudulent account disbursement requests. So far, Asset Planning clients have not experienced any account fraud as we are diligent in verifying that requests for money come from our actual clients.

One tip that TD Ameritrade suggested was having a code word with our clients to verify the authenticity of a request. Please feel free to reach out to us if you would like to implement this extra precaution. 

API received an email from Asolute Capital that contained this tidbit of information we wanted to share with you: 

NOT IN ANY HURRY - 66 is the "full retirement age" (FRA) to receive unreduced retirement benefits in 2015. 43% of men and 37% of women take their Social Security retirement benefits at their FRA or older (source: Social Security Administration).

On October 10th, we will be hosting our 6th Annual Gail Moreno Golf Tournament. All the proceeds of this tournament will benefit the Breast Cancer Angels.

We will be playing golf at Little Rec Golf Course in Long Beach with a shotgun start at 1pm and celebration, raffle, and food to follow. Asset Planning will pay for clients and 1 guest. All additional players are $60 per person.

We also have a Golf Ball Draw. Participants pay a $10 donation for the chance to win $300.