Americans Lose Confidence in Ability to Retire --Ellie on Neil Cavuto (Fox News)

A recent report said that only 13% of Americans believe they will be able to retire in comfort due to the current recession throwing them a curveball. I know that a lot of people are pessimistic right now. But it's not the time to panic, but be purposeful instead!

Gone are the days when we can trust the company, social security or Uncle Sugar to fund our retirement--but it doesn't mean we're without resources! I went on Neil Cavuto this week to talk about ways we can take charge of our own retirement and regain hope that we WILL be able to still have the gold in those golden years!

**PARTICIPATE - take advantage of 401(k)s in your company while you can, maxing out the matching portion. Yes, the market stinks, but the matching portion is FREE MONEY and even a 25% match is better than anything you're going to see in today's market.

**PRIORITIZE - start to be more agrressive in taking charge of your retirement by fully funding ROTH or traditional IRAs, including catchup funds if you qualify. Or, if you or your spouse own a homebased business, then fund a SEP (Simplified Employee Pension) IRA. Not only will it help you fund retirement tomorrow, but it will give you a significant tax break today!

**PURSUE - look at alternate sources for retirement funding such as HSAs (health savings accounts) that are tax favored, can be rolled over each year & are available at retirement. This would be a supplemental fund for retirement, not a primary. It basically works like this: you buy a high deductible insurance policy (and save tons on insurance), then you put the amount of your deductible into an HSA. So if a family had a $2500 deductible, they can put that amount into this account every year. If they don't use it on medical related expenses, then it will continue to rollover and grow until retirement. Go to http://www.ehealthinsurance.com/ for more info.

**PROJECT - what will you really need for retirement? Reevaluate & simplify to streamline your retirement needs, downsizing as necessary. By having an accurate estimation of your expectations and adjusting them to meet your projected income, then you can still retire, but maybe just do some things differently. Go to my tool center for a cool calculator that will help estimate what you'll need at retirement.

**PROTECT - learm to guard your retirement from people & projects that would deteriorate your funds. Even well meaning folks can mess you up big time. For example, now is NOT the time to loan your Uncle Harry $50K for his dream of starting an Emu farm! As parents to seven kids, my hubby and I know that bailing kids out of consumer debt or trying to fix their financial problems could also leave use vulnerable to a deterioriated retirement fund. So we set the precedence with the older ones by refusing to co-sign, bailout or fund anything that has to do with consumer debt. When it comes to giving friends or family long term loans, investing in speculative businesses, etc--JUST SAY NO!

Happy Retirement,

Ellie Kay

America's Family Financial Expert (R)

http://www.elliekay.com/

Tax Time Tips from Ellie

• Wait for Your Refund – If you’re like everyone else in this economy, you need every penny of that tax return. So even though a tax preparer offers to advance you your refund, just wait. Fees can range from $60 to $100 on an average refund of $3000. In fact Americans spent $890 million in fees for money they would have received anyway in 2007.
• Don’t Cash That Check – Some consumers are trying to get a jump on their spending while they are waiting for the IRS check to come in by cashing the checks that come in with your credit card statements. These “checks” have high fees and interest associated with them and the interest starts accumulating immediately.
• Rainy Day Strategies – I’ve recommended that single income families have 8 months of living expenses in an emergency fund and dual income families put back 6 months worth. But most families do not have anywhere near that amount, so get a jump start on your savings by depositing your check into an emergency fund.
• Beware ID Theft when Filing Taxes – Last minute filers who go to a temporary tax preparer are particularly susceptible to identity theft as the personal information on tax forms are exactly what predators are trying to find. Never go to a temporary tax preparer who may lure you with the promise of quick & cheap tax preparations. Instead, look to Turbo Tax, another software program, or a permanent CPA or tax prep service.
• Don’t Believe the IRS – Another tactic for ID theft during tax time is from scammers posing as IRS or Social Security representatives who try to trick you into revealing personal info via e-mail or phone calls. To validate whether an IRS inquiry is the real deal, call 1-800-829-1040.
• Homebased Business Tips – One of the few areas of our economy that is flourishing is in some of the direct sales companies. There are a lot of ways to make sure you get every deduction coming to you such as using Turbo tax or going to a professional. Homebased businesses can get tax breaks for buying their own health insurance, using a dedicated portion of their home as an office and job related moving expenses. But one of the most overlooked tax breaks is the SEP, or Simplified Employee Pension IRA because they think they are too small to qualify. So as your tax pro if contributing to a SEP IRA will help reduce your tax bill while building your retirement!

Here's to minimal tax trauma for you and yours!

Ellie Kay
www.elliekay.com
America's Family Financial Expert

Ellie on Neil Cavuto -- Financially Pinched Companies Pinch Employees

Goodyear Tire announced that they were reinstating their 401(k) program after cancelling it in 2003. But it's not the "good news" it appears to be because at the same time they froze more traditional pensions, thereby saving hundreds of millions of dollars at employee's expense! So what do YOU do when your company cuts benefits--do you have a recourse?

Basically, you take charge. You don't rely on your company to be your uncle sugar, you realize that you have to rely on other resources that are available to you. Today, I shared this on Neil Cavuto

1) TAKE ADVANTAGE WHILE YOU CAN: Invest in your 401(k) if/when it comes back into play. Companies are reinstating formerly suspended 401(k) plans. These may come back for six months, a year or longer. TAKE ADVANTAGE OF THE MATCHING PORTION up to the the % the company allows (usually 4% or 5%). Even if they are only matching 25%, that's a much better percentage than what you can make on your money in today's market.

2) TAKE MATTERS INTO YOUR OWN HANDS: One of the things that companies are doing is kind of a bait and switch tactic. For example, they may be reinstating 401(k)s but they are coming in the back door and cutting pension programs that are far more costly. It used to be that you could cound on social security and your pension to retire, but that is no longer true during a recession. Therefore, you need to fund your own retirement through Roth or Regular IRAs or even a SEP IRA (Simplified Employee Pension) if you or your spouse own a small homebased business. Max out the amount you contribute to your IRA based on your age (up to $5,000 for a traditional IRA or $6,000 if you are over 50) and don't trust your company to fund your retirement.

3) TAKE CARE OF YOUR OWN HEALTHCARE: Just about the time we find out that healthcare costs are rising 7% to 8%, we also find out that more and more companies are cutting healthcare benefits. Yesterday was the time to check into a high deductible individual or family plan with an HSA (Health Savings Account). For example, if you're an individual and have a $2900 deductible on your health insurance, you can tuck up to $2900 into a tax favored HSA account. If you're a family you can contribute up to $5800 per year. These tax favored funds are not the old fashioned "use it or lose it" rather they are your funds that will be rolled over from year to year and can eventually be used at retirement. Premiums for this high deductible plans are about half what a costly group plan can cost you and your family, so now is the time to have that safety net of covering the big medical expenses while not trusting your employer to be there for you when it comes to healthcare.

4) TAKE IT TO THE TOP & BE THE TOP: Employers still want to attract and keep the best talent. Show them you are not the weak link and make yourself indispensable. Go the extra mile, do quality work, bring in business, get along with your peers, support your boss and make sure that YOU are the talent they want to keep.

5) TAKE THE HIGH ROAD: If you are in the position of having to accept a severance package realize that you can still negotiate it. You can often test the wiggle room to get a higher amount and you can determine whether you take a lump sum or a longer payout. You also need to be sure to negotiate for longer lasting health and life insurance benefits. Don't sign any papers the day you are let go and don't make any rash or emotional decisions. Take a breath, take your time and realize that you still have options.

Ellie Kay

America's Family Financial Expert (R)

http://www.elliekay.com/

College Funding Crisis

Bethany went back to school this semester but about 15% of her classmates did not. It's the new phenomenon in my kids colleges (did I mention I have THREE in college at once?) Students are coming back home because parents cannot afford to keep them there. Many parents who relied on refinancing of their home mortgages or HELOCs (Home Equity Lines of Credit) are finding that they are upsidedown in their mortgages and there's no room to spare. Here are some ideas that will help you send those kids to college:

• Teach children a strong work ethic early. The discipline will help prepare them for competitive college admission and scholarships.
• Double dip. Encourage high school students to take classes that count as college credit, such as Advanced Placement – or investigate Dual Enrollment classes.
• Open a 529 plan. Parents can start saving now through a 529 education plan and reap tax benefits.
• Earn free money. Find organizations like Upromise that reward you with money for college each time you buy products and services from participating companies. Membership is free at Upromise.com and you can receive money into a college savings account on nearly everything you buy, so be sure to check their website before making purchases. Also find free contests to enter like Tuition Tales that offer money for higher education expenses.
• Buy a prepaid tuition plan. Many states or educational institutions allow parents to pay tomorrow’s tuition expenses at today’s prices.
• Start higher education at a community college first. Community colleges can save you thousands of dollars. Students can attend two years and transfer to a university to complete their education.
• Check employer benefits. A Society for Human Resource Management study estimates that 67 percent of employers offer financial assistance to employees seeking an undergraduate degree.
• Check college’s Financial Aid Office. They offer information on available loans and grants.
• Apply for scholarships. Millions of scholarship dollars go unclaimed every year. SallieMae has over 1.9 million scholarships totally 16 billion dollars! Have students apply for local scholarships, too. See your high school counselor for help.
• Minimize student loans. Adopt the philosophy that you’ll send your child to the best school they can get accepted into that you can afford.

For more detailed information, write to assistant@elliekay.com and put "College Crunches" in the subject line, we'll send you a file that could help make the difference between 30 years of student loan debt or a debt free college experience!

Ellie Kay

http://www.elliekay.com/

America's Family Financial Expert (R)

Texas to Toronto - From Ya'll to Eh!

My "Living Rich for Less" book tour took me from my original stomping grounds in Texas all the way to the frozen white north of Toronto. I tend to adapt easily to my surroundings, so when I did TV shows in Canada, I found myself saying, "The thing aboot finances if that you have to stay on top of them, eh?"

In Dallas, I had to keep myself from saying, "Hey ya'll, I'm fixing to tell you some thangs that are gonna help you a bushel with yer money." But somehow I managed and you can see some of these clips to get short, pithy and helpful hints that will help to save you $30,000 in 2009! This was on CBS NEWS You be the judge and tell me if you think the Financial Expert or the Texan took over in these interviews!

Ellie's personal story: Runs 2:40
- Ellie on the economy: Runs :43
- How to save on Homeowner's Insurance: Runs: 1:51
- How to save on Auto Insurance: Runs 1:31
- Grocery Savings: Runs 1:14
- Restaurant savings: Runs :55
- Saving Is Cool: Runs: :24
- Tips on Refinancing your mortgage: Runs: :47
- Charitable Donations: Runs: 2:09

I'll be back to Texas to do shows for CBS "Prime Time" (interactive perhaps?) and other shows on March 19th--so stay tuned!

Hey ya'll, check back again for more helpful hints on my blog, eh?

Ellie Kay

America's Family Financial Expert

http://www.elliekay.com/

The Negotiator

There is good news about the current economy: it's a buyers market in more ways than just housing. Learning to negotiate can be as simple as asking: "Is this your best price?" Here are some ways to become "the negotiator!"

• Negotiate -- It's a buyer's market, so feel free to negotiate on just about everything! You can even negotiate spa services (manicures, pedicures, massages, haircuts &color) by asking your service provider if they offer quantity discounts (buy 4, get one free). Service industries are hard hit and you don't have eliminate these services or pay more to keep yourself pampered in style.

• Renegotiate - Even if you have secured a particular rate for your vacation destination, don't be afraid to renegotiate the price. One client of mine, who subscribed to http://www.travelzoo.com/ in order to get the latest sales notices, found that his Bahama resort was advertising a new sale. Even though he and his wife had already booked the trip (and the reservation) for their anniversary, he called the resort, quoted the sale price and got the discount! He saved $1800 with one phone call by renegotiating!

• Prenegotiate -- Two months before your tenant lease is renewed, ask your landlord if your current rent is "the best they can do" as you are concerned with the current economy and really need a lower rent. You'd like to stay where you are, and if they could renegotiate for a lower price on the lease, then you won't have to look elsewhere. You'll be surprised at how most landlords would rather renegotiate than lose their tenants!

Happy Negotiating!

Ellie Kay

America's Family Financial Expert (R)

www.elliekay.com

Money Making Kids

"I know how I can make some extra money" read the caption on the outside of the card featuring a woman from the 1950's with a big smile. When you opened the card it read: "I'll sell one of the kids!" My son, Daniel, gave me that card, knowing how perfect it was for his mama!

Well, I learned how to save money using my kids, but in a slightly different way (rather than putting them up for sale on e-bay.) Jonathan, who prefers to remain anynomous (thus, the mask) wanted to earn money for a new electric guitar. I realized that I could turn over my "coupon job" to him and let him "earn" money by maintaining my coupon box. I've been so busy in the last few weeks, that I didn't have time to keep up with those little critters. I knew I was missing out on these savings in the grocery store.

So Jonathan began cutting, organizing and filing my coupons. The agreement was that he got the money I saved at the store from the manufacturer's coupons (including double coupons when I shopped at that kind of store) and I kept the savings from the store sales and store coupons. The first week, the total before savings was $189, the amount I paid was only $81 ($44 sale savings, $23 store coupons,and $41 in manufacturer's coupons). Jonathan bagged the $41 in cash and it was a win/win for both of us.

If you want to make money off your kids, you'd better watch it, especially if you have a really smart child! The next week, we ran to the grocery store to pick up a pharmacy prescription. Jonathan picked up a store coupon featuring sodas "four 24 packs for $7.99" with store coupon. He handed me the coupon and asked, "I know you don't usually buy us sodas because you don't think they're healthy. But do you think you could make an exception this week--especially since we have this coupon? Pleeeeze?" He batted his big brown eyes and gave me a sweet smile.

I bought the sodas, saving $10 with the store coupon.

When we took the stash to the car, Jonathan unloaded the drinks into the trunk, got into the car and turned to me, "Hey mom, do I get my $10 now?" I was incredulous, "What, Jonathan?" He grinned sheepishly, "You know... I gave you the coupon and you saved $10?" I smiled back at him, "Son, do you honestly think that I'm going to PAY you $10 for the privilege of BUYING you some soda? Besides, I used a store coupon, not a manufacturer coupon. " He was busted, "Well, it was worth a try."

Email this to your friends with teenagers and let them in on this way to make money from your kids! If you aren't familiar with ways to incorporate store sales, coupons, double coupons, store coupons, etc, then link onto the "Grocery" label and read the "how to" on my blog!

Ellie Kay
"America's Family Financial Expert" (R)
www.elliekay.com