True Cost of College – Updated

Posted on November 30, 2011 by admin

Occupy Wall Street is being dismantled and quashed now, but It won’t be long until Pomp and Circumstance and mortarboards are in the air along with the excitement of college ahead for high school graduates. But then reality smacks; 65% of students that graduate from a private college have outstanding student loans when they finish college (source: Council of Economic Advisers).

And for public, “in state” universities, it is going to cost about $150,000 per kid for a college education. This sum for a private college or University almost doubles! With the rapidly disbanding Occupy Wall Street movement, taking out student loans without being able to find jobs to pay them back is ludicrous. Is it a tuition scam being pulled on our youth and their cash strapped parents? The scam is that the cost of college and tuition has way exceeded the rate of inflation by as much as 10% per year in some areas. Providing a college degree for our children is becoming more of a dream than a reality for many families and taking out loans in this economy is like Russian roulette.

“Choosing a college is not about a cost differential of a designer purse or pair of sneakers over a generic product, it’s about a life charting detour if taken too lightly.”

But parents and students continue biting off way more debt than they will ever be able to chew or hope to digest. A college degree is of utmost importance, especially today but at what cost? We have become really good consumers when it comes to almost everything else… but not so much when we think the purchase is a necessity for our children.

Students today are graduating with literally hundreds of thousands of dollars in debt with a degree that is may not be very marketable in a vile economy and a horrendous job market.

Parents bought into the dream that a college degree was paramount but often failed to factor in the marketing genius most universities have deployed the past 25 years. Colleges now invest millions into stadiums, student recreational facilities and gyms that entice enrollment but drive up college cost.

It is typical today for a university student to graduate with the equivalent amount of debt that could have easily purchased their first home! As Occupy Wall Street has shown, college graduates cannot pay the student loan debt and the net results are horrible credit ratings, foreclosures and even bankruptcies of the student and often their parents. It is a perfect storm, or better stated, a financial disaster.

Creditor Collection calls and threatening letters make life miserable and can literally ruin and destroy ones future. Suicides have been attributed to debt overload. And for those of you who’ve not had to face this debacle with your children, kudos. Do not take the route of loans over prudent affordable college choice first.

Applying for grants and free application for federal student assistance (also called FAFSA) is the ideal first step. Secrets on tax free 529 plans and tips for filing for aid using strategies with fixed annuities, indexed annuities and even variable annuities are available. Be smart when applying for aid, grants and low cost loans but also apply Tough love as well. Being tough today is better than dealing with a foreclosure or bankruptcy (or worse), in the future. Get started by getting your free Holiday Budget ePlanner from www.mymoneytrack.com and set up your plan today. And to learn more about the Dark Side of Student Debt, click here for the report from Kiplinger.

When you need the best local financial advice or budget help available, contact My Money Track to help you get your life back on track. Your IRA or rollover is just too important of an investment to ignore. Local professional advisors are willing and able to help.

Thanksgiving again… already?!

Posted on November 21, 2011 by admin

Divorces and Thanksgiving. Spending what was once “family” time has become more of a chore than fun. It’s typical to not have all your own children at Thanksgiving lunch. And as the children grow up and have their own agenda, friends and relationships, the divorced parents often get the leftovers on holiday gatherings. Added to the “fun” of Thanksgiving and the horrible economy these past few seasons; now we get to experience dealing with our kids being far flung and more interested in their girl friends (or boyfriends) family than their own.

Such is life but you can still manage to eek out a happy and memorable day for yourself. Keep your chin up. Imagine how those first few Thanksgivings back in the early years of The Great Depression weren’t much fun either, but everything has a season and a reason. Make the most of the time you have on this earth and begin by doing what makes you happy. Do what you want to do this Thursday and do what makes you happy and for which you truly are thankful.

In fact, many of those Norman Rockwell looking, happy family gathering are torture for the attendees. Delight in your freedom if you do not have to make a command appearance at one of “those” events. A family is not just those who you are blood related but a family is those people you enjoy and admire and love unconditionally and they return the same to you.

In these difficult financial times, the key is to just get through them, as we know there are better days ahead. How do we know that with certainty? Because with setting up your personal budget and sticking to it, you are laying the financial foundation for your own personal financial successes, such as retirement, vacations, going back to school, travelling and giving back to your family. Investments in yourself may not show up in the net worth column on your balance sheet but they are the most precious type of capital you’ll ever accumulate. With a sound financial plan and a local professional to give you advice and help, the promise of a brighter future and a better you is something to really be thankful for everyday.

Never Say Never, ever…

Posted on November 17, 2011 by admin

Ain’t nothing like regret, to remind you you’re alive…

It finally happened. The one thing you’d never, ever have to accept or face shows up at your proverbial front door on a random Tuesday. Your life and how you view things changes in an instant. And in today’s fast paced but poor economic world, it is most likely a financial issue, challenge or obstacle that has you stymied.

The old adage “it would never happen to me,” happens. Your ex didn’t pay the mortgage or rent… maybe your car gets repo’d or credit cards declined? And you’re angry, embarrassed and most of all just generally depressed. Worse, many people just want a quick fix and aren’t willing to put in the work required to fix the problem that got them to this place of discomfort.

But believe it or not, in this economy, almost everyone is going through their own “nevers,” and having to handle things previously thought they’d never encounter. Loss of job, foreclosure or even threat of bankruptcy… nothing is off the table of reality these days. Some folks are working two or more jobs just to make ends meet and are finding they are getting ill from the stress. Some are even falling prey to drugs, alcohol, over eating or other unhealthy addictions. And it’s much worse for divorced or single people as they often feel as though they are dealing with the abyss all alone. Which is never the
case. You are never all alone.

And now the Holiday’s are near and buying gifts add to this stress. Save your money instead. Enough is enough and it’s time for you to just say no, and stop your fretting and worrying. You can get through this difficult time by following a few simple steps:

Don’t dwell on the past or whether from your childhood or not, what you do today is what will keep you sane and above water.
Don’t allow Guilt or Shame, Resentment and then Anger dictate how your life will be or become. You are “good enough” and you do deserve happiness.
Don’t avoid responsibility and acceptance, you and your actions had a role (no matter how small or large) in getting you to the place you are today. Recognize it and then move forward past it and onto resolution.
Don’t be too proud to admit you’re human and to ask for help (or forgiveness); humility is the first step to contentment (more Zen sounding stuff but it truly works to admit, accept and apologize and then move on to better days).

Refuse to accept personal defeat. Begin with setting yourself a specific
financial goal and personal budget. Commit to finding a local financial planner in Dallas to help you set aside money for yourself first in an IRA or even better a ROTH IRA. Frugal and happy is good! No more obsessing over mistakes in the past. It matters little what you did before that got you into your plight. What matter most is what you do next. And when you need the best local financial advice or budget help available, contact My Money Track to help you get your life back on track. Your IRA or rollover is just too important of an investment to ignore. Local professional advisors are willing and able to help.

ZEN and the Art of Social Security Repair

Featured

Posted on November 11, 2011 by admin

The Dalai Lama was asked what surprised him in life the most. He
replied, “Man, because he sacrifices his health in order to make money.
Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; He lives as if he is never going to die, and then he dies having never really lived.”

Balance and Perspective. Why then do we fret so much? Simple answer: MONEY or the lack of it. Struggle and strife to get paid, just might be the path to all evil. But hey, baby’s gotta’ eat; and get new shoes.
Be sure to get all of the “free money” available to you and yours.

The problems in Europe and particularly Greece and the Greek debt along with their austerity mandates offer insights as to what we may face here in the USA. Social Security may be broke and busted but it’s still writing checks; get all that you’re entitled to before it changes. Here are three super secrets for married folks:

1. Pick which Retirement you want; yours or your spouse’s:

Obviously select the one that pays you the most. Typically in a marriage there is a huge difference in wages. But even if the lower wage earner has worked, and has earned their own social security benefit, he/she may elect to receive an amount equal to half of their spouses instead. This is called your Spousal Benefit

2. Double Dip:

A person who has reached full retirement age could elect to take his/her Spousal Benefit and delay taking their own social security benefit. Working or not, take your spousal benefit and delay your own and let it grow until you’re age 70. It doesn’t matter if your spouse is taking their social security benefit or not. And upon age 70, if your own benefit is higher than the spousal benefit you’ve been receiving, just swap and take your own. That’s more money for you now and potentially more money for you later.

3. Getting Paid to Wait:

Typically when one spouse hasn’t worked outside of the home as much as their mate, she won’t have much if any social security benefit and will default to receiving her payments when her higher earning spouse retiresand decides to start taking social security payments.

Learn too all you can about simple but elegantly sophisticated ways to use new life insurance contracts to provide a lifetime tax free income during your retirmeent years; one that will supplement social security.

DO NOT WAIT. Once both spouses reach full retirement age, the higher earner (Husband in this example) should go ahead and file for his social security benefits, the lower earning wife then file for her spousal benefit and step three, the husband immediately suspends his social security benefit request. His benefit amount will continue to increase (and by about 8% per year too!) and then when he reaches age 70, go ahead and re-file to start taking his social security retirement benefit.

This will give the wife free monthly money instead of thinking she must wait until hubby fully retires and takes a check from social security before she can… very cool idea.

For more details contact http://www.socialsecurity.gov/retire2/applying6.htm
or feel welcome to call www.mymoneytrack.com 972-385-7606.

Home Sweet Home or maybe not?

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Posted on November 7, 2011 by admin

Lurking in the “shadows” has a new meaning in terms of home security.
Protecting against predators is a no brainer for baby boomers and our parents but now a more aggressive and much more discreet thief looms in almost every neighborhood, nationwide. Losing valuables and property such as your iPad, laptop or large screen HDTV is expensive but those things can (and should be) insured.

Property and casualty insurance is really inexpensive (actually cheap) and will replace those precious personal items lost to theft or damage. The new boogey man that will steal away your retirement plan, financial plan and even your IRA’s or 401k’s, is a silent assassin that is quietly, undeterred siphoning off hundreds of thousands of dollars of your money.

And it’s your safe money, the once considered “core” holding of any investment plan or budget item. It is the value of your home. No longer is owning a home considered a super safe investment for retirement. Tens of thousands of homes are already owned by banks but many more will soon beforeclosed with a for sale sign in the front yard or window.

Untold and unimaginable numbers of homes are going to be dumped onto the real estate market unless nothing short of a miracle occurs. Home values have already dropped 25% (even more if you add in the cost of inflation) and could drop as much or more in the future.

Why? Banks are not very good landlords; In fact, they are horrible at it. They will add fuel to an already out of control inferno economy as the banks are forced to raise liquidity (cash) to stay in business. There are already more homes for sale than there are buyers yet the roughly 1.6 million homes in the nation’s shadow inventory promise to drag down home prices for years.

In relative “hot spots” such as Texas, 1 out of 985 homes are in foreclosure, but in Florida 1 out of 368 and worse Nevada 1 out of 118 homes are in foreclosure. Even in no-so-glamorous, no flash and dash Midwest states such as Iowa, have 1 out of 667 homes in foreclosure (the national average historical number would be more like 1 out of 15,000 homes).

But this can be good news for those who are prepared. What’s the best financial strategy for you and the shelter debacle?

If you are already renting, keep renting; at least for a couple more years. Do not sign a lease longer than 12 months as better deals on homes almost practically a sure probability for your future personal budget. If you are divorcing, let the “ex” have the house and you take the cash or property equivalent instead of the real estate. It will be tough to swallow now but you’ll be grateful you did later.

If you currently own your home, consider selling it. Get out and invest whatever cash you may get from the sale. Invest it into very low risk investments that are insured by an institution or a state or federal government; for example, annuities (fixed annuity or index annuity, even Suzy Orman loves these), CD’s, US Government money market, or cool hybrids such as no surrender charge, single pay life insurance. Compare the interest rates and shop wisely. Seek out local money help, advice and credit counseling as well as paying off debt.

Learn all you can about simple but elegantly sophisticated ways to use new life insurance contracts to provide a tax free income in retirmeent that you cannot out live.

Then hunker down for the coming real estate Winter and relax… enjoy the ride because there’s nothing you can do about it other than wait it out and be ready for the “spring” (pun intended) eventually. Good deals appear to be popping up everywhere but hold off on buying or committing just yet. The art of the deal is only getting better.

Totally free but why so rare?

Posted on November 1, 2011 by admin

How often do we forget the smallest things in life that have the largest impact? It seems so simple and yet is often overlooked: a genuine compliment offered at the right time, in the right way, can help your relationship building stock soar to new heights. Financial planning and having a sound budget is great but if you want insurance on having a happy life, build yourself an annuity with your words.

Hey, we’re all human, and we all love to know we are appreciated. King Solomon is recognized by historians as one of the wisest people who ever lived. He said, “Pleasant words are a honeycomb, sweet to the soul and healing to the bones.” And, “A word aptly spoken is like apples of gold in settings of silver.”

Words of affirmation and approval… begin with some praise to your spouse, significant other, co-workers and children.

CAUTION: fake or forced complements can do as much harm as good.

Never try to manipulate your audience with insincere smooth-talking or phony flattery. You may be good at it but nobody is that good for very long. In an over abundant world of slick advertisements and clever marketing ploys, everyone has their antennae up for BS and con artist. Just open your eyes, be present in the situation and offer a heartfelt acknowledgement for qualities you admire and appreciate in those around you. And while you’re taking the time to notice the small stuff in your relationships, you may also recognize opportunities previously overlooked.

Perspective and Attitude, are two of the most important words (right behind Thanks and Please).

People not only do respond to those they like but also reciprocate in kind and kindness with the people who make them feel welcome, appreciated and overall good about themselves. You’ll attract people who will be drawn to a person who gives a boost to their self-esteem. Some may say this sounds self-serving, but it is a fact of human nature.

The four keys to “praising” correctly are:

1. Be Specific: The broad brushed “thank you” and “by the way I think you’re great” is okay, but for maximum impact, make it precise and particular. Tell them exactly what it is you admire about them; with plenty of details.

2. Be Sincere: Maybe you’re a bit sheepish with giving
compliments, but practice on people you know best to get more comfortable. It gets easier with practice. Look them in the eye and maybe grab their hand or forearm and just say what you like about
them.

3. Go Public. For maximum effect and impact, it’s easy to amplify your kudos by stating your complement when in a group or public setting. No need for a megaphone or power point slide presentation, but over dinner or in a small group at a reception or happy hour, sing their praises.

4. Go Old School: Put your praise in writing. But NOT in todays style of techno world text message, Facebook Post nor an email and not from your computer’s printer. Grab a pen a paper, and write in your hand, that special complement or thank you. Take a few minutes to write what you value about them. Do this in the evenings while you’re not distracted and even if you make a mistake, just cross it out and continue. It shows you really are human and cared enough to write.

In our era of digital and disposable communication, an old-fashioned,
handwritten note is something permanent that can be read over and over. It’s true that we get back in life what we give… use complements and see how much better your life will become.

Monthly Archives: November 2011

Thanksgiving again… already?!

Never Say Never, ever…

Totally free but why so rare?

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