This Week In Your Wallet: Sleep Easy
Hi all! Before we dive into the latest news, I just wanted to say thanks again for all your support for my new podcast, HerMoney with Jean Chatzky, which is supported by Fidelity Investments. (Thank you, Fidelity!) It’s been a big week — I interviewed author Jennifer Weiner, chef and television personality Giada de Laurentiis, Cosmopolitan editor-in-chief Joanna Coles and Arianna Huffington, president and editor-in-chief of the Huffington Post Media Group. Whew!
In Arianna’s new book (you can listen to her talk about it here in Episode 3), The Sleep Revolution, she explains why sleep deprivation is more of an issue for women than it is for men. A new survey from CreditCards.com seems to concur. The results suggest women worry more than men when it comes to matters of personal finance — and sleep less as a result.
While 56% of men report occasionally losing sleep over at least one financial problem, 68% of women report the same. In fact, women out-worry men both overall and in each of five specific concerns — retirement savings, cost of education, paying health care or insurance bills, paying monthly mortgage or rent and credit card debt. Why does money stress impact women more? It could be because we still earn less — 84% of what our male counterparts do, reports the Pew Research Center. But it also seems to be the fact that we’ve tuned into the reality that our retirements — and our lives — are going to last longer. It’s important to remember you need sleep to be able to effectively make financial decisions and come up with solutions to tackle those problems. Arianna suggests removing the technology from your bedroom and finding a sleep ritual you can stick with. I’ll never get tired of talking to her!
Ready To Launch
In other news, it looks like New York City isn’t only the “City That Never Sleeps” — it’s the city that’s best for young people launching their careers, according to a new Bankrate study. Ranking factors include pay potential, job prospects, career advancement, quality of life and social opportunities. Following NYC are Los Angeles, San Francisco, and Washington, D.C. Other cities making their ways into the top 10? Boston, Chicago and Philly. Included on the other end of the list, or worst places to launch a career via the study’s methodology, are the likes of Fayetteville, NC; Mobile, AL; Jackson, MS; and Montgomery, AL.
What to Do With an Old 401(k)
Spring cleaning isn’t just for the home — it’s for your finances, too. If you have one or more old 401(k)s from previous employers just sitting around, it may be time to dust them off and consider choosing one of five options for them, says Catherine Golladay, senior vice president of 401(k) participant services and administration at Schwab Retirement Plan Services. Here are some ways you could go:
- Leave it with the old employer. Some employers allow you to leave your 401(k) in their plan, but it’s important to take note of potential fees — and to adjust investment allocations over time. Also, you won’t be able to contribute anymore if you no longer work there.
- Roll it into an IRA. This is a common choice (38% of workers choose to do this, according to the Employee Benefits Research Institute). It’s a tax-deferred account, and it may offer more investment flexibility than your work-based plan.
- Roll it into your new employer’s plan. According to the EBRI, about a quarter of workers choose this option for repurposing an old 401(k). The perks of transferring it to your new employer’s plan may grant you access to a larger variety of lower-priced investments.
- Take the cash. I hesitate to mention this option at all — and paying income taxes on the sum.
- Ask a professional. See if your plan offers access to professionals who you can ask about the best decision for you and your nest egg.
Cash Or Credit?
While we’re on the subject of cash… ever noticed it’s harder to fork over a $20 than to swipe your card for the same amount? A new study from the Journal of Consumer Research shows that paying by cash or check increases a buyer’s emotional attachment to a purchase. For example, donating to a charity by check could foster a stronger connection than donating via credit card. The study also shows that writing a check or shelling out greenbacks — more “painful” methods of payment — may make us value purchases more. So, next time you think you’re in danger of splurging while shopping or out with friends, bringing along cash to pay with could be a good option if you’re “over” over-spending.
For the record, we suspect it’ll be even harder when Harriet Tubman shows up on the bill. Kudos to the Treasury Department for this savvy choice — and for leaving Lin-Manuel Miranda’s “right-hand man” Alexander Hamilton (whose name we can’t say anymore; we have to sing it) in place.
Have a great week,
Jean
