This Week In Your Wallet: Boost Your Retirement Confidence In 2017
As another year comes to an end, how are you feeling about your retirement savings? And looking ahead, what do you plan to do differently in 2017? New research from NerdWallet shows many Americans are (still) worried about their retirement savings, yet they’re unlikely to save more next year. That’s right, only 32 percent of those with a workplace retirement plan plan to increase their contributions — and this is with 40 percent of those ages 45 to 54 saying they’re concerned about their lack of retirement savings, and 30 percent of Americans saying they’re currently saving nada.
Boost your retirement confidence in 2017 by boosting your contributions. If you haven’t started saving, 5 percent of your income is a good goal with the idea of increasing it by 1 percent annually until you hit the recommended goal of 15 percent. And if you’re already contributing, upping your contributions by 1 percent next year is (so much) better than doing nothing at all. It’s as simple as that.
Now, if you don’t have a workplace plan, consider opening up your own retirement account online. (Here’s a list of top IRAs, and here are some of the best Roth IRAs.) And finally, if you’re one of the 55 percent of retirement savers, who is socking away some or all of your retirement savings in a regular savings account, consider diversifying that money in 2017 by adding retirement accounts into the mix. That way, you’re not missing out on tax advantages and the potential for much better returns.
“Burner” Debit Cards Can Help Protect Your Accounts
One Bankrate report found nearly two-thirds of younger millennials don’t have a credit card, and 56 percent of millennials plan to shop for holiday gifts with a debit card. If you’re planning to use debit this season (or for online shopping in general), know that it’s riskier in terms of potential fraud. (You’re only liable for a maximum of $50 when it comes to unauthorized use of your credit card, but for debit cards, it often depends on how quickly you report the fraud.) Privacy.com just came out with virtual “burner” debit cards to help protect your account from thieves — and CNBC reports they can be used for single purchases or recurring charges on one specific site. These one-and-done cards are linked to your existing bank account, and you can even cap the amount available to spend.
Making The Most Of Your Rewards
About 58 percent of Americans say using their credit or debit card to earn travel reward points makes sense financially, but few of them are actually taking advantage of those perks, according to a survey by the American Institute of CPAs. In other words, people are leaving money on the table. For example, Forbes looked at the earnings report for Discover’s Discover it credit card, and though it could provide users with 5 percent cash back in select categories, its average rewards rate has never been over 1.21 percent — meaning not many people are taking advantage of the rewards available to them. If they were, the issuer would likely be “hemorrhaging money,” reports Forbes.
So how can you make the most of your rewards? Google your specific cards to find out the best uses for each one. Some provide the most rewards for dining out, while others might be best for gas and travel. Consider using an app like Wallaby, which tells you which card is best, rewards-wise, for whatever you’re buying. Also, some uses (cash back, travel, etc.) for your points are higher value than others. Figure out the best way to use your points by dividing the dollar value of a potential prize by the points it costs — that will give you a per-point value that you can compare.
Financial Aid Packages Might Arrive Earlier
A new survey from education research firm EAB found 26 percent of colleges are sending out financial aid offers four to eight weeks earlier than last year, and 31 percent plan to send out offers two to three weeks earlier. More packages will likely be based on estimated costs and award totals than in previous years, reports MONEY. That means, of course, that actual costs of expenses like tuition, room and board and fees might be higher or lower than the package suggests.
The good news is that if it is higher, costs will likely be less than a couple hundred, according to officials at public colleges — especially when it comes to in-state students. So take note when you see the words “tentative, estimated or projected” inyour package, and if you’re not sure what’s estimated, call the financial aid office and ask.
Have a great week,
Jean
