Inheritance scams have been around forever, and they’ve only gotten more prevalent with the advent of online communication. Unfortunately, if the victim falls for the scam, they’ll only inherit the loss of funds, possible identity theft and more.
Here’s what you need to know about inheritance scams and how to protect yourself. How the scam plays out In an inheritance scam, a target will receive an email or letter, allegedly from a lawyer, informing them that they’ve inherited a large sum of money from a recently departed relative. The exact amount of money referenced in the scam will vary, but it can be as high as several million dollars. The target will be asked to pay an upfront fee for the ability to claim their inheritance. The scammer claims this money will help cover the cost of legal fees, taxes and other expenses that are related to the transfer of the inheritance. Unfortunately, if the target agrees to pay the “processing fee,” they’ll never see this money again – and they certainly won’t see the inheritance they’ve been promised. In another version of the inheritance scam, the target is asked to share personal information, including their checking account details, so the inheritance can be transferred to their financial institution of choice. Of course, the scammer has no interest in sharing any funds with the victim, and will instead use the victim’s personal information to empty their accounts and/or steal their identity. Scammers use several ploys to make their ruses appear authentic. In both versions of the scam, the victim will be instructed not to share the news of their good fortune with anyone. This stops the victim from reaching out to another family member to question the authenticity of the inheritance. In addition, the email or letter informing the victim they’ve inherited a large sum of money will often include personal details about the victim’s life, such as their home address, names of their relatives and more. All of this information can generally be scraped off the internet and/or other public sources. This, too, can lead the victim into believing the missive is legit. Red flags Protect yourself from falling victim to an inheritance scam by looking out for these red flags:
If you believe you’ve been targeted by an inheritance scam, take these steps to protect your money and your information, as well as to help law enforcement agencies catch the scammers:
Your Turn: Have you been targeted by an inheritance scam? Tell us about it in the comments.
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December blows in at the peak of the holiday shopping frenzy, and then it tiptoes out with the end of the year and post-holiday calm. Black Friday deals are long over, and there are no major shopping holidays this month, but you can still find a fabulous deal before and after the holidays. So, whether you’re finishing up your holiday shopping or looking for year-end bargains in any category this month, we’ve got you covered.
Here’s what to buy and what to skip in December. Buy: Electronics If you missed the Black Friday sales on electronics, you can still cash in on some incredible savings. Many retailers will keep the leftovers from November’s sales marked down through the end of the month. Look for discounted electronics at big box stores, online retailers and directly from manufacturers. Skip: Winter clothing It’s still too early in the season to find any real discounts on clothing. If you can wait until retailers start slashing prices on cold-weather wear after the holidays to drum up some business, you’ll save big on winter wardrobe essentials. Buy: Toys As the year draws to a close, you’ll start seeing steep discounts on toys and games from retailers that are looking to clear the season’s inventory before the holidays. If you can handle the stress of last-minute shopping, the week or two leading up to Christmas can be the perfect time to pick up some budget-friendly stocking stuffers for the special little someone's in your life. Skip: Fitness equipment Trying to slim down before the holidays? Hold off a bit on purchasing exercise equipment and you can save big. Soon, fitness gear and clothing, as well as gym memberships, will drop in price as consumers commence with the annual New Year’s resolutions fitness craze. Until then, you can enjoy brisk walks and runs around the neighborhood at no cost. Buy: Champagne Welcome the new year with the pop of your favorite champagne, all at a price that doesn’t break the budget. Liquor sellers will be competing for your business this time of year, and prices on the celebratory beverage will plunge as New Year’s draws near. Take advantage by stocking up on your favorite bubbly at a bargain price. Skip: Furniture and bedding This isn’t the time of year to upgrade your household and give your bedroom a facelift. Furniture and bedding will be sold at full price at most retailers this month. Instead, wait for the January white sales to purchase the same items at discounted prices. For even deeper discounts, shop for furniture and other home goods at fantastic prices at Presidents Day sale events in February. Buy: Christmas decorations Prepare to deck the halls without spending a bundle. You’ll find holiday decor, wrapping paper, tree ornaments and more slashed up to 50% in price the day after Christmas. With prices like these, it’s not too early to think about next year’s holiday season! Just keep everything well-wrapped and store in a dry place. Come next year, you’ll be ahead of the holiday shopping before the season even starts. Buy: Gift cards Gift cards are the perfect antidote to out-of-control inflation. They’re always appreciated, and you won’t feel like you’re spending a ton on a gift that’s not really worth the price. Best of all, you can find discounted gift cards all through December on sites like GiftCardGranny, CardCash and through private sellers listing on sites like Craigslist. Some sites will even let you customize the card with a personalized message for the recipient. The year is drawing to an end, but the savings on some items is just beginning. Use the tips outlined here for knowing what to buy and what to skip in December. Your Turn: Have you picked up any great buys in December? Tell us about them in the comments! Q: I’ve heard the Biden administration is planning to forgive student loans. What do I need to know about this plan?
A: In August 2022, U.S. President Joe Biden announced his plan to cancel thousands of dollars in student loan debt for qualifying individuals. The plan officially went into effect on Sept. 29, 2022. Here’s what you need to know about Biden’s plan for student loan forgiveness. Is every student eligible for loan forgiveness? According to Biden’s announcement in August, the administration plans to forgive up to $10,000 in student loan debt for individuals earning less than $125,000 a year, and as much as $20,000 for eligible borrowers who are also Pell Grant recipients. For couples, the maximum income eligibility requirement jumps to $250,000 a year. How do I apply for loan forgiveness? Approximately 8 million people already have income information on file with the U.S. Department of Education (DOE); these individuals will likely have their qualifying debts automatically forgiven. All others, however, will need to submit an application with the DOE . Applications can be downloaded here and will take 4-6 weeks to process. The final deadline for submitting applications is Dec. 31, 2023. However, the DOE recommends getting it in before Nov. 15, 2022 . This will give the department enough time to process your application before the student loan payment pause ends and interest starts accruing again on Dec. 31. What kinds of loans are included in Biden’s forgiveness plan? Undergraduate loans, graduate loans and Parent PLUS loans managed by the Department of Education are all eligible for loan forgiveness. It’s important to note, though, that Biden’s plan only applies to federal student loans. This means private student loans are not eligible for forgiveness, even if they began as federal loans. If you’re unsure what type of loans you have, contact your loan servicer to find out. Which income year should I look at to see if I qualify for forgiveness? According to a senior White House official, you can look at the income from 2020 or 2021 to determine whether you fall within the income threshold for loan forgiveness. If I meet the income requirements, will all of my debt be canceled? You may have noticed news items about the loan forgiveness program using language like “up to $10,000 or $20,000 in forgiveness”. This is referring to the maximum amount of loan forgiveness an individual can expect. The rationale behind this language is that some borrowers who fall within the income eligibility may owe less than the full forgiveness amount they are eligible to receive. This means that a student who owes $8,000 in student loan debt and is eligible to have $10,000 forgiven will not be able to pocket the remaining $2,000. Instead, that money will remain with the federal government. I continued paying off my student loans during the payment pause. Is there any way I can get that money back and have more of my loan forgiven? Many borrowers kept up with their loan payments during the pause. With interest paused as well, it was a great way to get ahead on loan payments. Fortunately, these borrowers can still benefit from the new loan forgiveness plan. According to the Education Department’s office of Federal Student Aid, “You can get a refund for any payment (including auto-debit payments) you made during the payment pause (beginning March 13, 2020). Contact your loan servicer to request that your payment be refunded.” Before contacting your lender, though, check to confirm you fall within the income eligibility requirements for loan forgiveness. What steps do I need to take now? If you haven’t yet applied for loan forgiveness, and the DOE does not have your income information on file, you can submit an application here at your earliest convenience. In addition, take these steps to ensure eligibility:
At this time, it’s important to be aware of loan forgiveness scams that will likely arise within the next few months. Be sure to submit your application directly to the DOE through the link provided above, and not to click on links that are embedded in ads or unsolicited emails. In addition, be aware that there is no fee necessary to submit your application, nor is there a need to pay for assistance with your application. Never share your personal information or Student Aid account password with anyone. Biden’s student loan forgiveness plan will bring relief to millions of borrowers. Use this guide to take advantage of this offer and learn what you need to know about the loan forgiveness plan. Your Turn: Will you be applying for student loan forgiveness? Tell us about it in the comments. With inflation at record highs, many Americans are finding it difficult to stick to a budget. After all, when groceries have leapt in price and household staples can be double, or even triple, what they cost just a year ago, how can the same amount of money get you through the month?
Sticking to a budget during times of high inflation is challenging – but not impossible. Here are five ways to budget while in times of inflation. 1. Plan your grocery purchasesGroceries can take a huge bite out of a monthly budget. Fortunately, there are ways to trim your grocery bill, even when prices are soaring. First, shop your pantry and fridge before hitting the store. You may not remember exactly what you have at home, and doing a quick scan of your food items can help you stick to purchasing only what you need. Next, plan your week’s dinner menu before shopping so you can pick up exactly what you need for the week in just one go. The fewer trips you make to the grocery, the less you’ll spend on impulse buys. Also, when you have the ingredients you need and plans in place for dinner each night of the week, you’ll be less likely to make a last-minute decision to indulge in takeout or fast food. Consider joining a club store at this time as well. You’ll need to spring for a membership, but you’ll enjoy steep savings on groceries and other products. Just be careful to only buy what you need, no matter how cheap an item might be. Finally, don’t forget to shop sales and to couponize. Use apps like Reebee, Checkout 51, Flipp and Grocery IQ to stay in the know of what’s on sale in each store, and to download coupons for even bigger savings. 2. Consider an energy auditWith winter approaching and the cost of energy sources still climbing, this can be a good time to have an energy audit performed on your home. An audit will help identify energy drains around your home, such as air leaks near your windows and doors, so you can fix them to make your home more energy-efficient. You can also take additional measures toward saving on energy costs, such as switching all lightbulbs to LED bulbs, unplugging electronics when not in use and setting your thermostat a little lower during winter, and a bit higher in the summer. 3. Choose your indulgenceEveryone needs to treat themselves to something special every now and then, but with costs rising on restaurant meals, movie tickets and clothing, something’s gotta give. Take a closer look at your just-for-me purchases of the last few months, and try to narrow them down to just one or two treats. You can swap them with an enjoyable activity that doesn’t cost much, such as a hike or bike ride, or cut them out completely. Alternatively, you can find ways to trim the cost of your indulgences. For example, if you love dining out but restaurant meals are destroying your budget, you can decide to eat out but skip the desserts and wines, or opt for a midday meal so you can take advantage of lunchtime specials. 4. Switch your auto insurance planIf you’ve had your auto insurance policy for a while and you’ve maintained a good driving record during that time, there’s a good chance you can save a bundle by switching to a new insurance plan and/or provider. Reach out to a representative at your current insurer to discuss your options. Ask about raising your deductible in exchange for a lower premium, reducing overall coverage or negotiating for a safe driving discount. After obtaining a quote, call several other providers to get competing quotes. You can choose to go with your lowest offer, or call back your present provider and ask them to match it for your continued business. 5. Pad your incomeAs always, when income doesn’t meet expenses, you have the choice of trimming expenses or boosting your income – or you can do both! In addition to following the cost-cutting tips outlined here, you can also look for ways to increase your income. If your paycheck is suddenly not enough to support your lifestyle, consider asking for a raise. Your workplace may have already given you a cost-of-living raise to reflect rising inflation last year, but this may prove to be insufficient as costs have continued to rise. Don’t be afraid to ask for another raise at this time. In addition, you can look for other ways to pad your monthly income. Find a side hustle, like driving for a ride-share company or consulting for hire, which you can do at your leisure on weekends. Ask your workplace about taking on additional projects on an as-needed basis for additional pay. Open a small service business doing something you love and excel at. Every extra dollar earned counts! Times are hard for the average American consumer, but with careful planning, you can ride out the record-high inflation rates and keep your budget intact. Use the tips shared here to get started. Your Turn: How are you adjusting your budget for inflation? Share your tips and hacks with us in the comments. Q: I’m always worried about money during the holiday season, and with inflation soaring, I’m more stressed than ever. How can I save on holiday shopping this year?
A: If you’re worried about making it through the holiday shopping season in the midst of record inflation, you’re not alone. A recent survey shows that 59% of American shoppers are stressed about buying holiday gifts this season due to higher prices. However, with some careful planning and budgeting, you can enjoy stress-free holiday shopping. Here are seven easy ways you can save during this holiday season. 1. Shop early It’s always a good idea to do your shopping early in the season so pressure and crowds don’t cause you to make decisions you’ll come to regret. This year, experts are urging shoppers to hit stores earlier than normally planned so they can take advantage of early season sales. Many big-box stores are struggling with a supply surplus thanks to an inflation-triggered decline in demand. This will likely lead to sales events to make room for more up-to-date inventory. You can take advantage of this surplus by shopping these sales and saving on your holiday purchases. 2. Set a budget Budgets are for holidays, too. Sit down before doing your shopping to build a reasonable budget for your holiday shopping. Factor in current prices when working out your budget. Of course, this is only half the work – you’ll need to stick to that budget for it to be worth anything. Make this easier by allocating a specific amount for every gift, shopping with cash and/or reviewing your budget frequently as you do your holiday shopping. 3. Shop with a list Instead of hitting the stores blindly, create a list of every gift you plan to buy for friends and family. You can browse online stores for inspiration, but resolve not to start shopping until you have a complete list. You’ll be far more likely to stay within budget when your purchases are pre-planned. 4. Leave some last-minute shopping for Green Monday While it’s best to do the bulk of your shopping early in the season, you can leave some last-minute gift-shopping for Green Monday, which falls on Dec. 14 this year. This is when retailers make their final pre-holiday markdowns. Be prepared for slim pickings, though, so don’t leave any specific gifts for this late in the season. 5. Think outside the box when planning your gifts If ever there was a holiday season to get creative with your gifting, this is it. Retail inventories are full of products that were backed up during the post-pandemic supply-chain disaster. Think furniture, home decor and more. While much of this may not make for typical holiday gifts, there’s no real reason you can’t delight a loved one with a new office chair, exercise bike or coffee organizing station. 6. Give gift cards Protect your gift list against inflation by giving gift cards. You can find discounted cards on sites like GiftCardGranny and CardCash, or use cash-back apps to earn them at no cost. Gift cards are easy to shop for, easy to budget for and always appreciated by the receiver. 7. Use apps to save In 2022, there are so many apps that can help you spend less on your shopping, and even put money back in your pocket. Here are some money-saving apps you might want to download ahead of this shopping season:
Your Turn: How do you plan to save on holiday shopping this year? Share your best tips and hacks in the comments. If you’re in the market for a new job, you likely have a list of requirements that includes some must-haves and a few would-be-nice-to-haves for your new position. However, there are several important factors in a new position that many future employees overlook. Here are five things to look for in a new job.
1. Compensation and benefitsSalary requirements are likely to be the number one item on your list when looking for a new job, but your paycheck is so much more than a number or single dollar amount. Ask about the entire package being offered with the open position. Are health benefits included in the contract? If yes, what kind of premiums and coverage can you expect to have? How many personal days does the job offer include for each calendar year? What, if any, retirement savings plan is included in the salary? If applicable, are costs of travel and moving covered? Look at the full picture before making a decision. 2. A strong, growing company There’s no way to know for sure what will happen to any company in the next few years, or even months, but it’s important to do some research on the company you may be interested in joining. Ask these questions from a current or recent employee:
3. Company values that align with yoursIt’s important to belong to a workplace that shares your values. If you need to compromise your integrity and swallow your true feelings every time you walk into work, you’ll harbor resentment and won’t enjoy your job much, if at all. Working for a company whose values align with yours will help build positive feelings toward the business and make your job more pleasant. In addition to questions about the company’s history, it’s wise to talk to current and former employees about the company’s culture as well as what its employees value most. This feedback can be quite telling when trying to determine value alignment. 4. A position that challenges you to growWhatever position you’re seeking, it should prompt you to grow and to build personal skills you’ve never, or rarely, used at your previous workplace. Don’t look for a job you can do easily; look for one that will challenge you and force you to grow beyond your current skill set. This will turn you into a more valuable worker and a happier, more fulfilled person. 5. A positive environmentA job can be perfect on paper but turn out to be a nightmare in real life, thanks to a toxic work environment. Speak to recent and current employees at the company to find out what the office is really like. Is the boss overly critical and demanding, or do they set high standards in a firm but understanding manner? Is there a strong thread of competition running through the office, or do team members work well together and celebrate each other’s successes? Is the office environment tense and high-pressured, or is it a happy, pleasant place to work? Find out everything you can about the office environment before accepting a job. A new job is a big deal, and it’s important to do your research carefully before signing a work contract. Use the tips outlined here to learn what to look for in a new job. Your Turn: Have you recently started a new job? Tell us about your job search in the comments. Now that you’ve learned how to indulge responsibly and are mindful of your credit score, it’s time to start planning for retirement. This is true no matter your stage of life.
It’s never too early – or too late – to start planning for your retirement. However, like all long-term savings goals, retirement should ideally be planned for as much in advance as possible. That’s because the more time you allow for your savings to grow, the bigger the nest egg you’ll be rewarded with when it’s time to cash in on your funds. Here’s how to get started on planning your retirement. Set a target number Before you start squirreling away money for the future, determine how much you’ll need to have saved for living comfortably and independently throughout retirement. Experts recommend taking your current living expenses and multiplying that number by 400 to reach the amount you’ll need for sustaining yourself based on a 4% return. Choose your retirement accounts Next, you’ll need to select a place to keep your retirement savings. There are many options to consider, some of which you may already have if you are employed. Here’s a quick review of the two most common retirement accounts: 1. 401(k) If you’re currently or previously employed, you may already have a 401(k) that’s collecting money for your retirement, and investing it so it can have an opportunity to grow. Take advantage of this retirement tool by maximizing your contributions. Additionally, many employers will match a portion of, or all, your contributions, which is literally free money that will help your investments grow, tax-deferred. 2. IRA An Individual Retirement Plan (IRA) is a retirement fund that allows your money to grow, tax-deferred. Like with a 401(k), some employers will match a portion of, or all, contributions. However, there are federal limits on how much you can add to your IRA annually. You can choose between a conventional IRA or a Roth IRA. A conventional IRA lets your money grow tax-deferred, but withdrawals are taxable. A Roth IRA does not feature tax-deferred growth, but qualified withdrawals are not taxed. Presented in the table below is a brief summary of the pros and cons of each retirement vehicle for easy comparison. Features 401(k) IRA Roth IRA Allows Matching Funds Yes No No Tax-Deductible Yes Depends* No Tax-Deferred Growth Yes Yes No Taxable Withdrawals Yes Yes No Maximum Yearly Contribution (2022) $20,500 $6,000 $6,000 Maximum Yearly Contribution Age 50+ (2022) $27,000 $7,000 $7,000 After you’ve identified the retirement fund strategy that best works for your goals, you’ll also need to choose somewhere to invest the money. Low-risk investment vehicles, such as federal bonds or trust funds, are usually the best choice. Select a target date fund If you are saving for retirement through the use of a 401(k), be sure to check if your employer offers a target date fund. This refers to your planned retirement date. You’ll know your employer offers a target date fund if there’s a calendar year in the name of the fund, such as “B.K. Holdings Retirement 2055 Fund”. Simply determine an estimated guess of the year you intend to retire, and then pick the fund with the date closest to your anticipated retirement date. A target date fund is a smart choice because it spreads the money in your 401(k) across many asset classes, such as large company stocks, small-company stocks, bonds and emerging-markets stocks. Then, as you near the target date, the fund becomes more conservative, owning less stocks and more bonds, automatically reducing your risks as you near the date of your retirement. With a bit of work and a lot of planning, you’ll have your future secured in the best way possible. Your Turn: What’s your retirement vehicle of choice? Share it with us in the comments! Q: My parents are getting on in years and I believe they can use some assistance in managing their finances for their everyday expenses. I’d also like to make sure everything is in order if I ever find myself needing to make financial moves on their behalf. What do I need to know to help my parents with managing and protecting their finances?
A: Lots of older adults can use some help managing their finances. Your parents are fortunate to have a child who is proactive in their desire, and willing, to assist them in this challenging task. Here are some ways you can help your elderly parents manage their financial affairs. Determine whether they need help In addition to possibly not even knowing how your parents will respond to the idea of you being more involved in their finances, you may be unsure about whether they truly need your help at this time. If you notice any of the following, it can be a sign that they are in need of assistance with managing their money:
Communicate openly Before you take any real steps toward managing, or assisting with, your parents’ finances, it’s a good idea to have an open conversation with them about your current and future intentions. Explain that, if something would happen to either of your parents and they’d need help, you’d want them to be secure in the knowledge that their finances are being managed properly. You can share that you are only there to help, and that you will not take any real action without their full permission, whether this is before or when it becomes necessary. Gather information Next, sit down with your parents and ask these questions about their finances: 1. Have you named a durable power of attorney for finances? A financial power of attorney (POA) will take ownership of your parents’ accounts if they were to become incapacitated. In absence of a POA, you’d likely have to file a petition with a court of law for guardianship of your parents’ accounts. At this time, you may also want to ask them if they work with a financial planner or accountant. 2. Where do you keep your financial records and assets? Make sure you have a clear list of all your parents’ records, accounts and assets. If your parents have been hiding money under the mattress for years, they may have a sizable nest egg in their bedroom and you need to know about it. In addition, keep all account information, as well as a list of your parents’ assets and their locations, in a secure place. 3. What is the name of your mortgage lender? If your parents are still paying off a mortgage, or another large loan, be sure to learn the name of the lender and the status of the loan. Record the reference number for the loan as well. 4. What are your monthly expenses? Make a comprehensive list of your parents’ ongoing expenses, including all fixed bills and non-fixed bills, as well as seasonal and discretionary expenses. 5. How do you pay your bills? Find out which, if any, of your parents’ bills are paid automatically and which account funds the money transfer. Ask about other bills: are they paid via paper check, digital check or a checking account? 6. How much is your annual income? Ask about Social Security benefits, monthly pension, investment dividends and any other income stream your parents may have. 7. What kind of health insurance do you have? Find out if your parents receive Medicare or Medicaid benefits, and whether they have additional benefits. You’ll also want to inquire about possible long-term care insurance, which can cover the cost of a long-term health aide and/or senior living facility 8. Have you written a will or a trust? It’s a difficult topic, but a crucial one: Make sure your parents have a plan for what happens to their assets after they’ve passed on, as well as the name of the attorney where it is filed. Establish a plan At this point, you’re ready to establish a plan for managing, or assisting with, your parents’ finances. Be sure to listen to their personal preferences and to honor their dignity as much as possible. Ask them if they’d like you to take responsibility for one or more of their monthly financial-related tasks. For example, you can pay their mortgage and car payments each month, or make decisions relating to their investments. Also at this time, consider simplifying their finances in any way you can. For example, if your parents have multiple credit card balances, you may want to consolidate this debt by paying off the balances with an unsecured loan and then having just the one loan payment each month. You can also automate as many bills as possible. Alternatively, you can talk about the future only, and have your parents agree to let you manage their money if one or both of them become incapacitated in any manner. If your parents find it difficult to relinquish this bit of independence, start assuming responsibilities for their finances gradually, just one bill at a time. Taking over the finances of elderly parents can be a delicate and daunting task, but it is often a necessary one. Use the tips outlined here to navigate this situation smoothly. Your Turn: Have you helped your elderly parents manage their finances? Tell us about it in the comments. |
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