Assistance with Life, Work, Family, and Wellbeing
Internet Safety for the Whole Family
Online safety has become an important issue in our interconnected, digital world. Protecting your personal information when you shop, bank, or post on social media takes vigilance. These tips will help you and your family stay safe:
• Lock your network. Make sure your WiFi network is password protected. Be cautious about accessing sensitive personal information (such as financial accounts) when you are using free WiFi in a public place.
• Change passwords often. Passwords should be changed every six months or whenever another person has gained access to one (even someone you trust). The best passwords use a combination of capital and lowercase letters and numbers and are at least eight characters in length. Never share your passwords or use the same password for more than one website or app.
• Limit your online profile. Avoid storing credit card information with online retailers whenever possible. If you no longer use a social media, email, or blogging account, shut it down. Abandoned or forgotten accounts are an easy way for identity thieves to obtain your personal information.
• Keep the family computer in a public room. Does your child use a computer for homework projects or to play skill-building games? Keep the computer in a shared space so you can more easily monitor these activities. Turning on the computer’s parental controls is another way to set limits on your child’s online access.
• Monitor a teen’s smart phone or tablet use. When you decide it’s time for your preteen or teen to have his or her own phone or tablet, it’s important to have a chat about online safety. Create consistent rules about what age-appropriate apps children are allowed to have on their devices and what social media sites they may use. Establish guidelines on when your child is allowed to give another person a phone number or email address or post a picture online.
For more ideas on how to keep your family safe online, contact LifeMatters. Assistance with identity theft and Internet safety issues is available 24/7/365.
Source: The Staywell Company, LLC
Planning for Retirement
Setting clear, realistic goals is key to good retirement planning. Making decisions about what your retirement will look like well before it’s time to stop working will help you allocate resources toward achieving your goals.
The ideal retirement is one that helps you stay active and engaged with your interests. Considering these questions will help you plan a retirement that fits your unique needs:
• What do I want my retirement to look like? Do you want to sail around the world, start a new career, or spend your days reading by the pool? Keep these considerations in mind when you’re planning where you will live or what skills you will need to develop.
• What retirement savings vehicles will work best for me? An IRA or 401(k) is not the only way to save for retirement. Consider if other assets, such as real estate or insurance products, may help with funding your retirement years.
• At what age will I retire? This decision isn’t just about how much you have saved. It also depends upon what goals you have for your career and how you want to spend your retirement years. Health considerations and family circumstances may also factor in to this decision.
• Will I work part time when I near retirement age? Some people may want to ease into retirement by switching to part-time work. Others may want to look at ways to convert a hobby into a source of income. If either of these options appeal to you, consider setting a tentative date for when you will make this transition and adjust your savings plan as needed.
• When will I create a retirement plan? Creating a written plan with your retirement goals is an important step in making your dreams a reality. Keep this plan in mind when making decisions about your future.
The retirement planning process is an opportunity to challenge yourself and explore new options. Getting an early start on your retirement plan will help you reach your goals faster — and may even give you time to set some new ones!
For assistance with setting retirement goals, contact LifeMatters. Help is available 24/7/365.
Source: Nolo Legal Press
Dollars & Sense:
A Retirement Savings Glossary
Do you find talking about retirement savings confusing? Understanding some basic terms may be helpful when determining what retirement savings options make the most sense for you:
• Qualified retirement plan: A qualified plan is typically not taxed until you withdraw funds. Most employer-sponsored retirement funds are qualified plans.
• 401(k): A 401(k) plan allows you to defer a designated amount from each paycheck into a savings fund (up to a certain limit each year). You also delay paying taxes on that income until it is withdrawn from the fund. If you withdraw from a 401(k) prior to retirement, you will likely pay a penalty; however, loans and hardship withdrawals are available under specific circumstances.
• IRA: An Individual Retirement Account (IRA) is typically set up through a bank or financial planner, and is not considered a qualified retirement plan. There are two basic types of IRAs: a traditional IRA allows you to defer taxes until you withdraw the funds, while a Roth IRA requires you to pay the taxes up front. The IRS sets limits on how much you can contribute to an IRA each year.
• Vested: If you are vested in a retirement plan, it means that you will receive those funds in full at retirement. If you are only vested to a certain percentage, then that percentage is what you will receive when you retire. You are always 100% vested in the salary you defer into a 401(k) plan.
• Annual limits: Most retirement funds have a cap on how much income you can divert into them each year, though if you are closer to retirement age, you may be able to make additional, “catch-up” contributions. If you can afford to save more than what is allowed by your 401(k) or IRA’s annual limit, it may be to your advantage to diversify the types of plans you have. For example, you may want to open a Roth IRA as a second option for saving in addition to your 401(k).
For suggestions on how to adjust your budget so you can save more toward retirement, contact LifeMatters. Assistance is available 24/7/365.
Source: Nolo Legal Press
Student Loan Scams
Have you seen ads claiming that a company can provide “student loan forgiveness”? Many of these offers are scams that will cost you more, not less money. Beware of these red flags:
• Pay-to-play. Never do business with a company that requires payment in advance for debt management services of any kind. In fact, in many cases it is actually illegal for businesses to charge for help with settling your debts. So if you contact a company that seems happy to help — as long as you pay first — walk away.
• Instant debt relief. Put simply, instant debt relief is a myth. Any company that offers to secure loan forgiveness or get you out of default is almost certainly trying to rip you off. Odds are all the company will do is charge you a fee to help you apply for a Direct Consolidation Loan. If you qualify for this type of loan, you can apply for it on your own for free.
• Advertising. Do ads promising loan forgiveness often pop up in your search engine or social media feed? This is a sure sign that you are being targeted, especially if you’ve recently searched for loan consolidation or debt management resources. It’s best to avoid these companies and focus on more conventional options for managing debt, such as speaking with a LifeMatters Consumer Credit Counselor.
Whether you’ve gotten caught in a student loan scam or simply want ideas on how to manage debt, the LifeMatters Financial Consultation Service can help. Call anytime.
Source: Balance
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