Saturday, December 31, 2016

The 31-Day Money Challenge

Editor’s Update: We published this series in 2014. Since then, thousands have worked through the 31-day money challenge, finding great success. Because it’s as relevant today as it was then, we are republishing it this year. We hope it helps you with your finances.

31 Day Money ChallengeAs we begin a new year, it’s a good time to give our finances a makeover. So for the next 31 days, we are going to tackle just about every personal finance and investing topic one needs to get out of debt, start investing, and begin moving closer to financial freedom.

There is a lot planned over the next 31 days. Each day, I will publish a new blog post and podcast. I have a number of great interviews lined up for some of the podcast. Today, for example, I interview Jean Chatzky about financial freedom, including what it means to her, how to achieve it, and what holds most people back.

From there we’ll cover everything from budgeting to the one-and-done method of saving money to intro investing. There will even be a number of podcasts about how to make extra income. In short, I’ll be covering it all.

Here’s what I have planned for the 31-Day Money Challenge:

Day 1: What is Financial Freedom (with Jean Chatzky)

Day 2: How to Set Goals You’ll Actually Achieve

Day 3: How and Why to Prepare a Net Worth Statement

Day 4: 7 Tips to Effective, Stress-free Budgeting

Day 5: The 4 Rules of Budgeting (with Jesse Mecham of YNAB)

Day 6: The One-N-Done Way to Save Serious Money

Day 7: 20 Painless Ways to Save Money

Day 8: 10 Tools to Help You Better Manage Your Money

Day 9: Reader Q&A

Day 10: All About Credit Scores

Day 11: How to Improve Your Credit Score (interview with Maxine Sweet from Experian)

Day 12: How to get out of debt

Day 13: How to Use the Debt Snowball

Day 14: Which Way is Up? (Figuring out how to tackle your debt, emergency fund, and investments)

Day 15: Interview with Carl Richards (author of The Behavior Gap)

Day 16: Why you Should Invest Like a Business Owner

Day 17: How to Invest Like Warren Buffett (with Larry Swedroe)

Day 18: How to Create an Asset Allocation Plan

Day 19: How to Pick Investments that are Right for You

Day 20: How to Become a Retirement Super Saver

Day 21: How and Why to Keep Investing Costs Low

Day 22: A Look at My Investment Portfolio

Day 23: How to Invest in Real Estate [A rags to riches story with Brandon Turner]

Day 24: How to Tell if You Are On Track to Retire

Day 25: Jemstep–An Asset Allocation and Investment Selection Tool

Day 26: All About Term Life Insurance [Interview with Jeff Rose, CFP]

Day 27: How to Make Extra Income on the Side [Interview with Jay Money]

Day 28: How to Start Your Own eCommerce Business [Interview with Steve Chou]

Day 29: Mortgages 101

Day 30: All About Retirement Accounts

Day 31: Listener Q&A

If you haven’t already, subscribe to the Dough Roller podcast to make sure you get each of these shows.

The post The 31-Day Money Challenge appeared first on The Dough Roller.



from The Dough Roller http://ift.tt/2itrwXP

Friday, December 30, 2016

5 Things to Know About Your 401k Before Leaving a Job

Think about the last time you received a job offer. Did you compare the pros and cons of accepting the new position? Perhaps you evaluated the differences in compensation, vacation time, and the cost of health care. Did you remember to include the cost of benefits you were leaving behind?

I didn’t…until I made a costly 401(k) mistake.

I left my job on a Wednesday afternoon, after three years and 364 days in that position. If I had just worked through Thursday and hit 4 years of service — a mere 24 hours later — my 401(k) would have been fully vested. I left nearly $3,000 on the table!

When I realized my mistake, months after the fact, it was far too late to make a correction. However, you can avoid making the same mistake and other silly blunders. All you need to do is arm yourself with the facts needed to make an informed decision.

Learn More: How to Maximize Your Employer’s 401(k) Match

Here are five steps you should take before leaving a job with a 401(k):

1.       Calculate the total amount your current employer has contributed to your 401(k)

If your retirement plan offers a matching benefit, it means that your employer contributes money towards your 401(k) account based on specific rules documented in your plan.

Occasionally, employers will contribute a percentage of your salary regardless of whether you contribute yourself. Other plans dictate that an employer match dollar-for-dollar up to a percentage of your salary. Some may match 50 cents on the dollar for the first 3% up to 6% of your salary. The bottom line? Every plan is different.

In order to determine your benefit, you should review your plan document or consult with your benefits department. The total dollar amount contributed by your employers is on your 401(k) statement. If you don’t have a recent copy or an online account, contact your plan’s customer service department or your company’s benefits department for help.

It can be easy to forget, though, when contemplating a new job (especially one that’s drawing you in with a higher salary). The value of matched contributions is a great benefit that should be included when you calculate your salary and employment package.

Learn More: Resigning On Good Terms: How to Leave Your Job Without Burning Bridges

2.       Determine the percentage you are currently vested in your 401k

Next, find out how much of your employer match is vested. Vesting is fancy terminology for the percentage of money you get to keep. Plans often incentivize employees to stay by increasing the amount of guaranteed contributions with longevity of service. The retained value of employer match contributions is dictated by the vesting schedule documented in your benefits plan.

Example Vesting Schedule:

Length of Employment Percent Vested
<1 Year of Service 0%
1-2 Years of Service 25%
2-3 Years of Service 50%
3-4 Years of Service 75%
>4 Years of Service 100%

Let’s say you’ve worked at your company for nearly 3 years, and your current 401(k) balance says $30,000. During last the few years, you contributed $20,000 to your 401(k) and your employer has generously matched $10,000.

If you left today, 50% is vested. This means that you would get to keep $5,000 of the money your employer matched, and all $20,000 of the money you contributed. In total, you would retain $25,000 of the $30,000 balance.

You can validate your current vesting percentage on your 401k account statement. However, if you want to obtain the vesting schedule rules, read through your plan documents for details or consult with your benefits department.

The percentage you are vested may not sway your decision to leave a job, but it’s worth knowing how much of the matching contributions you are guaranteed to keep.

3.       Figure out the date when you will cross the next vesting threshold

Use your plan’s vesting schedule to calculate when you will cross into the next threshold.  To do this, you’ll need to know the date you started working.

Building on the example above, consider the following vesting scenarios:

Start Date End Date Years of Service Vesting Percentage Amount of $10,000 match retained
A June 1, 2014 May 26, 2017 2 Years 11 Months 50% $5,000
B June 1, 2014 June 3, 2017 3 Years 75% $7,500

In scenario “A” you leave your job a few days shy of your 3 year anniversary, while in “B” you leave a few days after your 3 year anniversary. By staying just one extra week, you’ve shifted in the 75% vesting threshold. In turn, you’ve increased the amount of money you get to keep by $2,500. I don’t know about you, but that’s worth one more week of my time.

What if you find that you are in a few days or a few weeks from a milestone, like I was? Consider negotiating the start date at your new job, to align with the best scenario possible.

4.       Find out if your 401(k) plan charges maintenance fees

Some plans, particularly small business plans, charge annual management fees. If your current 401(k) is charging you a flat fee for administration, you may want to consider alternative options that don’t have this added expense.

Related: What to do When Your Employer’s Retirement Plan Sucks

You could decide to roll the money to your new company’s plan or to roll the money into an IRA. It’s a good idea to evaluate a variety of factors and consult a specialist before acting.

Fees will be published on your 401(k) statements and in plan documents. Or, consult with your benefits department to help you locate the information.

5.       Determine if you have received the entire match you are owed.

If employers match contributions, they usually deposit their portion right away. However, sometimes your contribution rate exceeds the limit they can match per paycheck. This may happen if you frontload your account at the beginning of the year, or increase your match to catch up towards the end. On an annual basis, you employer will reconcile the difference with a “true up” contribution. Find out whether your employer’s total match has been deposited, or if you need to wait.

Keep in mind that you may be charged a fee to close your 401(k) account. This is important if you think you are entitled to a true up contribution. If so, wait until the contribution is posted before initiating a rollover, transfer or distribution. Otherwise, the true up contribution will re-open your account and you’ll find yourself paying a second closing fee and doing twice the paperwork.

Related: Calculating the Value of a 401(k) Account

Leaving one job for another is a big decision, and shouldn’t be taken lightly. Be sure that you not only factor in your 401(k) and employer match when weighing your options, but determine if you’re leaving before taking advantage of all benefits due to you. If nothing else, learn from my mistake: make sure that you’re not resigning a mere day sooner than you should, leaving thousands of dollars in employer contributions on the table.

I’m still kicking myself in the butt for that one.

The post 5 Things to Know About Your 401k Before Leaving a Job appeared first on The Dough Roller.



from The Dough Roller http://ift.tt/2ilSBtR

Wednesday, December 28, 2016

In Memory Of Good Hiking Friends We’ve Lost Along the Way – 2016

3 Decorating Ideas for Winter Window Treatments

Inspire your windows with these 3 decorating ideas for winter window treatments and keep cozy during these cold months.  Consider the following ideas: adding a cheerful statement, considering bold prints and dressing up plain curtains.

Image Source: Flickr

Adding a Cheerful Statement
Think big and bright when making these bold ornaments. Red and green scrapbooking paper in fun patterns adorns shapes cut from poster board. We found ornament silhouettes online then enlarged them to suit the window. Glue three papers onto each ornament. Punch a hole at the top, then hang them on red cording or yarn taped to the top of the window. A valance of live greens finishes the display. Source: MidwestLiving

Considering Bold Prints
Bright florals that attract traditional tastes and graphic geometric patterns that offer youthful spunk are some of the bold prints being seen on windows lately. “With pattern becoming more important, it will change the way a designer designs for the window and how the client views her [or his] window fashion,” says Barrett. Source: HGTV

Dressing up Plain Curtains
Although it’s hard to go wrong with simple, solid sheers or panels, why not take them a step further? Give them a custom look by painting on a pattern or stencil, try glueing on embellishments such as silk flowers, beads or pom-poms. Or add bands of contrasting fabric to the bottoms of curtains that need a little boost.
Budget: Modest. Pretty trims can be had for a few dollars, and unadorned curtain panels for not much more. You also can go heavy on humble fabrics and light on expensive ones to get a more upscale look for less cash.
DIY: Absolutely, whether you’re working the sewing machine or wielding a glue gun. Source: DIYNetwork

 

Contact:
Universal Blinds
601 – 1550 W. 10th Ave
Vancouver, V6J 1Z9
Canada
Phone: (604) 559-1988

The post 3 Decorating Ideas for Winter Window Treatments appeared first on Universal Blinds, Shades & Shutters.



from Universal Blinds, Shades & Shutters http://ift.tt/2iGAiSO

Affordable Waterproofing

Content originally published and Shared from http://perfectbath.com

 

You want to find a company that is experienced and trustworthy? Nice company to work with and one that you can count to the job right? Look no further –you have found them. At affordable waterproofing, we understand how stressful it can be for you to choose a bathroom contractor with the right skills to make your shower- room perfect and one that suits your bathing desires. However, our company has found out the solution to your concerns and we are now here to make your bath easy, healthy and enjoyable by providing affordable waterproofing services to all our clients. Bathroom Waterproofing

About Us

Affordable waterproofing LLC is a family owned company based in Delran, New Jersey, South jersey, Philadelphia and Delaware with cost-effective and superior waterproofing services for over 30 years. We pride ourselves on supplying the best bathroom waterproofing system installation, mold removal, and foundation and structural repairs around. Because of our commitment to our clients, we back all of our services with watertight guarantee and unparalleled customer service. Our friendly no-pressure approach to the business has earned us an A+ BBB rating and outstanding reviews from customers. We look forward to continuing to provide dry, confortable bathrooms for years to come.

Our Featured Products

There is no doubt that you are wondering why you should go for our products; the answer is simple, we carry quality bathroom fixtures that are not sold in big box stores. Our featured products section has been carefully created to bring you the ultimate home SPA experience. Steam showers, whirlpool tubs and far electromagnetic steam bath in this selection are the latest European design. These models will transform any bathroom into an ambient oasis for health, well-being and pure soul pleasure. We believe our products improve people’s lives daily and contribute to vitality and vigor. We have included our best-selling units that offer an elite array of features to bring you the perfect bathroom makeover and make a dramatic statement. Check out what we have to offer and you will be pleased with what you find.

Why Us

Our affordable waterproofing company is trustworthy, efficient and cost-effective. Our customers will vouch that we can fix bathroom leakage problems both big and small, from a moldy crawl space to full-out bathroom flooding; leaving your bathroom super dry, healthy and confortable for daily stress less bath. We take customers satisfaction very seriously, so we provide free inspections. Competitive pricing, lifetime warranties and a guarantee of excellent customer service. Put simply, we will get your bathroom dry and keep it that way, and do so with smiles on our faces.

What Our Clients Are Saying

We got the last of our shower together and connected without so much as a micro problem. You have a great product and it is our delight and privileged to do business with such an honorable and honest business which is a rare thing these days. We will be recommending you and your products to all of our friends and associates and our contractor is also equally impressed and said he will be ordering your products for his future projects as well. (Debbie and John G. Halifax NS)

 

 

The post Affordable Waterproofing appeared first on Perfect Bath Canada.



from Perfect Bath Canada http://ift.tt/2hxyewo

A 10 Minute Budget That Actually Works

I hate budgeting. I’ve tried using envelopes, Quicken, YNAB, and even fancy spreadsheets… the results are always the same. I start off strong, but within a few weeks, I lose interest in the time-consuming chore that budgeting can be. The problem is that I still need to manage my money. So, what do I do?

budgeting

I confronted this problem a few years ago, and asked myself the following question: how do I effectively manage my money in as little time and with as little pain as possible? To answer that question I came up with a money management plan that doesn’t require me to track all of my expenses every month, and requires a relatively small investment of my time. In this post, I’ll share my plan with you.

Before I get to the steps I take, it’s important to say that you should do what works best for you. You may need to track (or just feel more comfortable tracking) every dime you spend. That’s great if it works for you. You may also want take my plan and modify it in ways to make it work better for your own finances. Either way, budgeting should be viewed as a means to an end. Budgeting and money management are a way to allow us to spend and save our money in the most productive and efficient way possible.

If you need 100 expense categories to accomplish that goal, so be it. If you can do it with just 5 expense categories, great! It turns out that I use just one expense category most of the time. Here’s how:

Save First

You’ve heard the expression, “pay yourself first.” What this means is that you should first set aside a specific amount from each paycheck to be saved. Then, you can spend the rest. That’s what I do, and my budget looks like this (all percentages are based on gross income):

Savings: 15%

Spending: 85%

As long as I save 15% of my gross income and spend no more than 85%, I don’t typically care how much I spend on groceries or entertainment or electricity. Unfortunately, though, the fun can’t just stop there.

I have found at least three potentially significant problems with this simple approach that you must watch for: (1) failing to save as much as you comfortably can, (2) spending more than you planned to spend, and (3) getting whacked by periodic or unexpected expenses. Recognizing these potential problems, I developed a simple approach to address each of them.

Resource: How to Develop the Habit of Spending Less Than You Make

Update: My wife and I now save about 70% of our income. It helps that our mortgage is paid off and we live a modest lifestyle compared to our income. I’ve also switched to Personal Capital’s free financial dashboard to manage everything from spending to our investments.

Failing to save as much as you comfortably can

676080_81745440.pngHow much money should you save? There’s no one right answer to that question. The goal is to achieve a reasonable balance between enjoying today and saving for tomorrow. For me that once meant saving between 10% and 20% of gross income. I view 10% as the absolute minimum goal and 20% as ideal for most individuals and families.

But what if I could comfortably save more? That’s one of the potential downsides to this simple budgeting plan. In and of itself, it doesn’t tell you how much you can reasonably and comfortably save.

To determine that number, I prepare a budget template. I use a simple Excel spreadsheet that divides my monthly expenses into three categories: (1) fixed expenses (e.g., mortgage, telephone, cable), (2) variable expenses (e.g., groceries, entertainment, clothing), and (3) periodic expenses (e.g., car and life insurance, gifts, vacations). The fixed and periodic expenses are easy to determine by looking at past bills. The variable expenses can take some time to pull together; if you religiously use a credit card like we do, though, the information is right there in your bank statement.

With this information plugged into my spreadsheet, I can get an idea of how much (or how little) I am able to save. I can also see how making adjustments to my spending will increase or decrease my savings. What I don’t do is track all of my expenses each month according to these categories. The template is there just as a guideline to determine how much I can reasonably save. If I’m not at 10%, I look for ways to trim expenses in one or more categories. I also look to see if I can reduce my expenses in some relatively painless way, in order to save even more.

*Check out some of my painless money-saving tips, which I will regularly update with new tips readers and other bloggers have sent in.*

You may be asking how I keep my expenses in check against this budget template, if I don’t track all my expenses each month. Good question! That brings us to problem #2.

Another Budgeting Strategy: The 50-20-30 budget is a popular way to control your spending.

Spending more than you plan to spend

900964_19199366.pngSo, you have a simple budget plan that calls for 10% savings, but you end up spending more than the 90% left over. This happens to all of us at times… but now what? But rather than going to the extreme and tracking every penny, I look at my expenses and determine what category (or categories) caused the most problems.

The problem expense areas are usually not a surprise to me. For us, it’s spending too much money eating out, buying too many clothes, or spending too much on the house.

I know these are our problem areas because I’ve been managing our money for 25 years. If you’re new to managing your money, it won’t take long for you to identify the two or three sticky areas in your budget. And here’s the point: track just those categories for a month. There’s no point in tracking expenses that aren’t causing the problem. Focus on the problem. You’ll spend a lot less time and you will direct your energy at the problem area(s) in your budget.

Learn More: 10 Guardrails That Will Keep You on the Road to Financial Freedom

Having tracked the problem areas for a month, you’ll have a better idea of why you’re spending more than you should. If it helps, put cash in an envelope for just these problem categories. When the cash is gone, you stop spending. Again, the point is to focus just on the problem areas of your monthly spending.

Getting whacked by periodic or unexpected expenses

It’s usually just when you think you’ve got control of your spending that the car insurance bill comes in the mail. In the past, this would drive me (no pun intended) crazy. Not any more. For periodic expenses, I simply add them up over the course of a year, divide by twelve, and put that much into my online savings account each month. When the bill comes in, I transfer the amount from savings to checking and pay the bill. For us, our periodic expenses include the following:

  • Car Insurance (twice a year)
  • Life insurance (once a year)
  • Personal Property Tax (once a year)
  • Gifts (throughout the year, but mainly at Christmas)
  • Vacations (once a year)

For unexpected expenses, like a car repair, we use our emergency fund if we can’t include it in the monthly budget. Of course, we then have to add to our emergency fund, but that is what it’s there for.

Train Yourself: How to Keep One-Off Expenses from Breaking the Budget

As I said at the start, there is no one right way to budget. The best system to use is always the one that you will actually stick with.

For us, the simple approach is the best, and we’ve managed to control our spending quite well this way. If you use a different system, let us know what works for you!

The post A 10 Minute Budget That Actually Works appeared first on The Dough Roller.



from The Dough Roller http://ift.tt/1MReN5a

Tuesday, December 27, 2016

Weekend Warrior Backpacking Guide

Wilderness Navigation and Route Planning

2016: My Nomadic, Open-Hearted Year in Review

On the very first day of 2016 I landed at Liberia Airport in Costa Rica, alone.

I didn’t have a ticket home yet, and I didn’t have much of a plan. All I knew was that I was single, I was “location independent,” and I was totally overwhelmed by all my freedom.

jessi-blogpost-12_27-image-1

The week before, I sobbed in my mom’s lap about how I’d never thought I’d feel lost or depressed again. I’d spent the first 27 years of my life feeling lost and depressed, but then I found my fucking purpose. I was pursuing my dreams full-time, on my own terms, and making an impact. Shouldn’t that be enough to be happy?? Ugh.

A few months before, I’d made some big, bold (terrifying) choices.  I had moved out of NYC, given up my (insanely lucrative) training career to focus on building my business online despite not knowing a single thing about business. I figured after that everything would just… I don’t know, fall perfectly into place?

So, fast forward. Crying to mom while my old friends Depression and Confusion hover nearby, and deciding to book a ticket somewhere warm and beautiful because fuck it.

I put feelers out on facebook and glommed onto a vague plan to maybe meet up with some internet friends in Costa Rica, later in January. I booked an AirBnB treehouse in a random town, and I arrived on New Year’s Day with no idea how to get anywhere, or what as gonna do when I got there.

After a series of appropriate mishaps (aka it was New Year’s Day so none of the buses were running and no cabbies were out), I finally arrived at my treehouse. It was late at night and I could hear the ocean.  I was surprised. Am I by the ocean? 

The apartment was adorable though, the weather was deliciously warm, and I was starving. I put on a pretty dress and started walking toward the lights nearby, hoping that lights meant food, and that I was somewhere with menus printed in English. As I sat there that first night, eating pizza of all things (it was the only thing they had left) and watching the people around me, I was filled with a sense of yes-ness. This was where I was supposed to have come. Good things were going to happen here.

I was right. The next morning I discovered that I was indeed about a 60 second walk from the beach, and that this was (shockingly) a surf town. Literally everyone was there for the sick waves, bro. 

How did I not realize this? Easy: when I booked my trip, I did exactly zero research. I wasn’t interested in being prepared, I was interested in being gone.

jessi-blogpost-12_27-image-3

Those two weeks were nothing short of soul-restoration. I spent tons of time by myself reading, writing, resting, swimming, praying, and re-connecting to myself. I walked everywhere, watched every glorious sunset, tried surfing a few times (full disclosure: I sucked and dated it), made a friend to practice spanish with, and soaked in the healing warmth of the sun.

By the time I left Santa Theresa, I was tan, well-rested, and filled with purpose and clarity again.  I was… happy.

Then I traveled five hours to spend a few weeks living with a guy I had met once at a wedding years ago, and his fiance. Seem weird? I guess it kind of was, but I’ve made a habit of meeting internet friends in intimate real-life situations, so why not? Turns out, Jon and Alison are amazing, and my time spent with the two of them felt like I had  gotten a VIP invitation to join a beautiful little nomad family.

Our daily routine was blissful: work during the morning, go on a little adventure/exercise break, then return to work until dinner. Alison is a naturopathic doctor and an amazing cook, and I swear I ate healthier with them than I ever have in my life. On my birthday, Jon and Alison surprised me with a beautiful day including zip lining through the jungle, a massage, dinner, and (somehow) dancing. It was touching and beautiful and I started to feel really sad and stressed about leaving. 

One night during dinner Alison talked me into staying for another few months. (You can stay in CR without a visa for three months, so that was how long they had their apartment.) Their other roomies were coming back so I’d have to figure out lodging, but I figured what else am I doing?

Finding last minute lodging was tough because it was high season, but I had the sense it would all work out, due to my incredibly excellent “luck” lately. One day I was out for a run on the beach and decided I didn’t feel like running anymore, so I stopped for tacos and a beer. There I met a bartender whose aunt had a house in a nearby town, so…you know… I rented it.

By this point I was driving everywhere on my beloved ATV, so a 20 minute drive to and from a remote little local town was actually a thrill. I drove by cows and goats and sheep and just blissed out every day. 

jessi-blogpost-12_27-image-2

Costa Rica was such a desirable destination that many of us had visitors and friends throughout the trip, and it was always wonderful. Friends came and went so often that it felt like our family was constantly expanding. One of the highlights for me was having my best friend from college come to visit so we could spend a few days laughing, sunning, and catching up on each other.

One thing I haven’t mentioned yet here is that Jon and Alison’s roommates were Molly Galbraith of Girls Gone Strong, and her boyfriend Casey. I had met Molly years before at a wedding, but had never gotten to spend much time with her. I knew that she was smart and driven, but what I didn’t know was that she (and Casey) are also fucking hilarious.  

innertime was just as likely to be a place where everyone helped one person through a work problem as it was to be all five of us laughing so hard our abs hurt.

I learned a few important things while I was living with these two amazing couples. Watching how very different they were from each other, and seeing how both of them really just worked, I was fascinated and inspired. 

I had felt like maybe the single life was better for me for a variety of reasons, but watching these guys I thought… well geez, that looks pretty awesome. I also realized that I really needed to be surrounded by other entrepreneurs. I hadn’t even realized until then how isolated and lonely I had felt in my work, but

Some other notable things that happened in Costa Rica include me getting a case of food poisoning so intense I was praying for death, many encounters with scorpions and giant spiders, riding horses on the beach at sunset, and some incredibly work productivity. I created and launched several new courses while I was there, learned for the first time how to create sales pages and white sales copy, and got a clearer picture of what I wanted to be building.

The moral of Costa Rica for me seemed to be: happy, healthy, tan, and productive as fuck.

jessi-blogpost-12_27-image-4

I spent about a week with my family after I got home from Costa Rica. Just enough to unpack and re-pack and cuddle my adorable new nephew, before heading to the Thai Embassy in NYC. After that I hopped on a plane to celebrate the closing of snow season with my little brother in Montana. We snowboarded, partied, and reconnected for a few days before I headed out on a thirty hours flight to…

…Thailand.

Fun fact: Thailand is a country in Asia. That was quite literally the only fact I had in my back pocket the day I landed. Despite a few days booked at a hotel to sleep off the absolutely crushing jetlag, I had no plan whatsoever. No housing, no contacts, no idea what Thai culture was like. All I had was a ticket to leave, three months later, from a different city.

Chiang Mai was supposed to be a hub for digital nomads like myself, which is why I chose it. Plus because it’s super cheap so I could (and did) live like a goddamn on very little money. Mostly I was following the gut desire (born in CR) to be surrounded and supported by like-minded entrepreneurs. I figured: so far buying tickets to random places with no research had panned out pretty well, so why stop now?

Just to be clear, when I say I didn’t know anything about Thailand, I’m not exaggerating. Early on, a new friend told me I had to check out Cambodia since it was right nearby, and I laughed and corrected her, saying Cambodia is actually in Africa. 

I was so confident in this totally false statement that she responded really slowly, like she was talking to a child, or a crazy person.

“No it’s not. Cambodia shares a border with Thailand. I was there a few weeks ago.”

“Jessi, where do you think you are?

Ah. Well. This was sadly not the last time I would be horribly embarrassed about my lack of world-knowledge. Over and over again, as I met people from all over the world, I would feel incredible shame to be from America. Our education system is so self-centered that I’d never heard of whole big countries like Laos, and if you’d asked me previously where Bali or Malaysia were, I’m not sure I would have even named the right hemisphere. 

Mind you, of course, I could have done some travel-research to find these things out before my trip. But nonetheless, it was shocking to realize how little value American public schools place on Asian history and geography.

jessi-blogpost-12_27-image-5

Before my trip, when people would ask me if I knew anyone there, I would say “No, but that’s ok, I’ll make friends.” People thought this sounded crazy, but I just knew in my heart it would be fine.

The first week in Thailand I met two random French-cum-Canadian men in a coffee shop. They were accountants who had quit their jobs and were traveling Asia together for six months, and we fell easily into a friendship.

One of these wonderful men went off to travel on his own for a while, and the other stayed in Chiang Mai to see if he could put together a plan for a business that would allow him to become a full-time digital nomad. (I’m convinced there truly is no better place in the world to do this.) We very quickly found a group of young nomads who met every Friday to share skills and advice, connect, solve problems, and socialize.

This community of nomads was easily the best part of Chiang Mai for me, and I felt supported and nourished in every way I had been hoping for. The people I met were from every country imaginable, and any given dinner table with them was sure to include at least half a dozen unique accents and tons of laughter.

Interestingly, I didn’t meet that many Americans. A few, for sure. But far more Canadians, Australians, and Europeans. At a social gathering I was asked constantly by curious foreigners about the whole Trump for President thing. They genuinely wanted to understand: who are the people supporting him? Is this a joke? 

A few guys from Denmark pointed out that in all their travels around the world, none of them had ever met a single Republican. We realized with horror that it’s because Republicans don’t really “travel.” They “vacation.”

Is that a big blanket statement? Sure, maybe. But I’ve done a ton of traveling myself, and it seems to stand true. I genuinely believe that traveling the world irreversibly opens your heart and mind to other people and cultures in a way that would make it nearly impossible to fall for the Republican rhetorics of racism, sexism, and the myth that America is the best while the rest of the world is backwards. I believe that if more people traveled like this, Trump wouldn’t be our president-elect. (You don’t have to agree, but this is my story and I’m telling you what I saw.)

Everywhere I’ve traveled has been filled with open-hearted and open-minded people. People interested in the world, interested in bettering themselves, and interested in learning and growing and meeting people. The people I met this year consistently valued experiences over belongings, and understood that happiness is an inside job. Living in Chiang Mai was fuel for my soul

After living in a sleepy, tiny Costa Rican town, I was also thrilled to have access to interesting goings-on again! Chiang Mai has gorgeous temples, a crossfit gym, cows just chillin mid-city, and a totally amazing nightlife with open-air clubs, where everybody actually dances their faces off. (Literally everyone dances. All night. You wouldn’t go if you didn’t want to dance, because there is no pretense of being too cool there. It was heaven on earth.)

Plus the food… oh my god, the food. For a dollar, I could get a filling dinner of the best Thai food I’ve ever had in my life. And the coffee scene was out of control. Legendary and competition-winning baristas in world-class coffeeshops, on every corner.

jessi-blogpost-12_27-image-6

I mostly spent my days working in coffee shops, and spent my nights drinking, playing pool, and dancing. For the rest of my life, there will probably never be anything as refreshing to me as the first sip of a Chang beer poured over ice while sitting outside Wanz Cafe in the still-sweltering heat when we quit work for the day at 6pm.

Plus, the highlight of Thailand was the fact that I was able to bring my little brother to visit for two weeks.

I’d been saving money for several years in an “adventure fund” to take Jason somewhere cool, and was finally able to cash it in.

This fund was based on the pay-it-forward principle; I would not be who I am were it not for some adventures I was taken on when I was young and broke. I was insanely lucky, and the adventures I was taken on permanently shifted my worldview and trajectory in life. I consider it my duty and my pleasure to offer the same kind of experience to other young people, starting with my brother.

For two weeks, I would wake up and find Jason at the cafe downstairs, where he was playing hide and seek with the children of one of my neighbors. Then, since Jay ate about ten meals a day, most of our time was spent as a sort of Thai gustotory scavenger hunt. Before we even finished lunch he would have already planned where we should head next for an early dinner, and would typically stop on the way there to buy snacks on the street. 

It was such a yes experience, having Jason there, introducing him to my nomad life, seeing his heart and mind expanding, and receiving the soul-nourishment of being together in such a magical place. 

After Jason left I dove back into work, launching my Empowered Women course again, and writing a new one called Make Friends With Your Feelings. That shit poured out of me over the last few weeks in Thailand, as though I wasn’t writing it at all, but rather receiving it. While riding the creative tidal wave, I also dyed my hair silver, then blue, and prepared to leave Chiang Mai and return to “normal life.”

Except “normal life” was really to begin with a thirty hour trip to Toronto, where I was attending Jon and Alison’s wedding! 

To kick things off, I got super sick at the end of the flight, and had to sleep for two days in their spare bedroom. Whomp, whomp. But then I was reunited with my Costa Rica family, including Molly and Casey!! We prepared for wedding festivities and socialized with our Toronto fitness friends, then I got all fancied up with my friend and date-for-the-evening Rog Law, and boated over to a gorgeous little island club and watched our friends get married. It was beautiful.

Ok but now for real- back to normal life!

Except that I have no normal life anymore. 

My plan was just to stay with my mom and spend time with family for a few weeks before heading to NYC for a month in September. There, I planned to do my first ever Empowered Women Project Workshop while I finish working on my TedX talk, which I would be giving October 1st. The talk was the whole reason I was stateside, and I needed some time to focus on it.

So, great. “Time with family” included my older brother’s birthday party, where I saw his best friend, Tom. I have known Tom since I was eight years old, and we’ve been somewhat distant friends over the last twenty-one years. We had a really fun and giggly time together at the party, and over the next few days I tried to process some new information: I think Tom is hot.

jessi-blogpost-12_27-image-7

This was a very confusing fact for me, since he’s this super weird guy who was friends with my high school ex boyfriend and my brother. Except that at sleepovers he would sometimes stay up all night talking to me. And technically we “dated” in 5th grade. Oh, and, I was his first kiss.

So long story short (ha! This is already almost 2500 words) I ask my brother what he would think about me asking Tom out, and I receive not just a blessing but a gushing soliloquey of praise and support. Tom and I meet for drinks one night at a bar. I tell him flat out that I’m leaving in a few weeks, I’ll never live in Syracuse again, I don’t believe in marriage, I never want children, and I’d understand if he wasn’t down for that. He loves living here, definitely wants a family of his own soon, and tells me “there’s no way I’m giving up the opportunity to spend time with you.”

We end up kissing that night, and become somewhat inseparable for the next few weeks.

Naturally, I’ve made plans for my month in NYC, and I want to honor them. But the thought of leaving starts to feel like less and less of a good idea. One day I tell Tom that I want us to keep getting closer, and he tells me it’s hard because he knows I’m leaving soon.

What if I stay for a while?” I ask.

By the time I head to NYC I plan on staying with my mom “through the holidays” to figure out what’s there with Tom. I already know it’s Big and Important, but I don’t want to rush things just because I’m homeless, so I agree only to stay a bit and “see.”

When I return, it’s to give my TEDx talk. I’m terrified, because what I’ve written is excruciatingly personal and vulnerable. It’s about sexual assault, and the experience of trying to love yourself while living in a female body in our culture.

The first time I perform a stumble-through for Tom, he says to me, with tears, in his eyes “I’m just so honored that you like me.”

The talk goes amazingly well. Since it’s my second one, I’m a lot more comfortable with the whole concept of standing on stage and giving a memorized speech.

It feels powerful and truthful, and the response I get from the women in the audience afterward is both exhilarating and devastating.

Woman after woman waits her turn to speak with me for a moment, many of them sharing their personal experiences with sexual assault, and all of them at least affected on behalf of someone they deeply care about. I go to a fancy dinner with my family to celebrate and later on I cry a lot and sleep for a long time.

Soon after, I realize a few things with alternating ecstasy and rage:

  1. I’m going to move to Syracuse.
  2. I will probably marry this man and have his children.

I assure you, these realizations did not come easy. In fact, each one came with waves of resistance and pain and fear and healing and courage. Moving here means I would have to handle some shit I vowed never to be a part of again: upstate NY winters, driving a car, having a “normal life,” and living somewhere that doesn’t inspire me. Fuck that. FUCK ALL THAT.

But it didn’t matter. I was spending tons of time with my mom and my older brother and my nephew. Tom and I were having an amazing time together. I was… happy. In Syracuse. Ugh.

We didn’t mean to move in together so soon, but circumstances rang and we answered. Tom and I moved into a little one bedroom apartment in a one-stoplight town. I started re-learning how to drive a car. We enjoyed the beautiful fall, and I watched my nephew learn to talk. We made it through an election that tested the limits of my ability to keep my heart open.

The interesting thing to me about re-meeting Tom now is that I used to be someone who completely lost herself inside of every relationship. I was sure I wouldn’t get married for a lot of reasons, but one of them is that in my view, marriage is the death of growth and expansion, and growth and expansion are my highest values. I didn’t think I could ever continue my personal growth and expansion with another person, because I had always become smaller, thinner, less of myself once I had another person’s feelings to deal with.

jessi-blogpost-12_27-image-8

But with Tom, I felt strong. Sure of myself. Somehow aware that I wasn’t going to shrink here; that his personal need for growth and expansion would make it ok for me to show up fully, forever. That everything I had solidified about myself this year were finally being reflected in my ability to maintain my bigness with another person.

In November, we spent a week in Mississippi to celebrate Tom’s birthday and to visit my dad and his wife. My little brother and his girlfriend were there, and we all spent the kind of amazing day in New Orleans that will be family legend for many years. While traveling, I had deeply missed spending time with my family, and I felt like I was finally catching up.

By the time we returned home, winter had arrived in earnest. December has included a lot of settling into our new apartment, settling into our new relationship, spending time with my family, and (of course) working.

I don’t know what 2017 will look like, but I do know that 2016 was exactly right. All the travel, all the chaos and pain, all the massive growth and learning and expanding, it was all exactly right. Traveling alone has been one of the most incredible and life-affirming things I’ve ever done, and despite having an apartment and a boyfriend, I have no intention of giving it up.

In a few weeks I’ll be going off the grid completely for two weeks to Peru. I’ll be flying solo, of course, and it’ll be something totally brand new: a meditation, yoga, and ayahuasca retreat for massive, intentional healing. No wifi, no electricity, no work. I’m scared and excited to be doing something so big and new, but thanks to the year I’ve had I’m more confident and relaxed than ever.

I know I can handle anything, that I am enough, and that life is constantly giving me exactly what I need. Don’t get me wrong though, that doesn’t mean life is constantly making me happy.

Sometimes what I need is to be scared, or lost, or lonely, or angry (ahem, Trump). Sometimes the gifts I am given come in the form of pain, and heartache, and loss. But since they help me continue my path to healing and growth and learning how to keep my heart ever-more open in the face of challenges, they are gifts nonetheless.

2016 taught me how to know and maintain my self-ness, no matter where I am, what I’m doing, or who I’m with. I can’t wait to find out what 2017 will bring.

The post 2016: My Nomadic, Open-Hearted Year in Review appeared first on Jessi Kneeland.



from Jessi Kneeland http://ift.tt/2i4idgv

How ACA Subsidies Can Benefit Early Retirees

In a recent post, I discussed some of the tremendous tax advantages associated with early retirement. This follow-up discusses another aspect of the tax code that is very favorable to early retirees: ACA subsidies.

aca-sub

It’s often a low-cost lifestyle that enables people to retire early and benefit from low taxes in retirement. Well, this also makes them prime candidates for Affordable Care Act (ACA) — also known as Obamacare — subsidies.

This post was planned before the election; since then, of course, Donald Trump has been elected President. This has a potential impact on everything I am covering in this article today.

President-elect Trump’s first stated priority (in regards to healthcare reform) is to completely repeal Obamacare. Which campaign promises he will follow through with, and how effective he will be in accomplishing his goals, is an unknown. Therefore, we will focus today on the law as currently written and as is still in effect. I will certainly watch with great interest and plan to write an update regarding any potential changes.

What Are ACA Subsidies and Who Qualifies?

There are two different types of ACA subsidies, each working in different ways to control healthcare costs for low-to-middle income families.

The first type of subsidy, the premium tax credit, limits the amount that households pay on insurance premiums. The second type of subsidy, reserved for those with very low incomes, are cost-sharing reductions that limit out-of-pocket healthcare expenses. This impacts things like deductibles, copayments, or coinsurance.

Related: How Important is it for Early Retirees to Pay Off Their Mortgage First?

Note that both subsidies are based on annual household income. No consideration is given to assets. Therefore, early retirees with low recognized income can benefit from both of these subsidies, regardless of how much wealth they have accumulated.

Aside from income, there are other factors that determine who qualifies for ACA subsidies. Full eligibility requirements can be found here.

The Numbers That Determine Qualification

There are two key numbers related to income that you need to know, in order to determine if you will qualify for subsidies under the ACA. The first is your household income, quantified in the law by your Modified Adjusted Gross Income (MAGI). The second is the multiple of your MAGI to the Federal Poverty Limit (FPL).

Your MAGI includes earned income. It also includes taxable interest, pension, annuity, IRA distributions, Social Security benefits, ordinary dividends, and rental real estate income. MAGI does not include basis on taxable investments, withdrawals from Roth IRAs, or cash taken from savings.

As explained in a previous article on the tax advantages of early retirement, early retirees are in a unique position. They have great control over how they recognize their income. This is achieved by utilizing a variety of combinations of retirement and taxable accounts to limit their income tax burden.

These same strategies can be used to keep MAGI low to maximize ACA subsidies. Thus, limiting health care costs.

The 2016 FPL numbers used to determine 2017 ACA subsidies are as follows:

  • $11,880 for individuals
  • $16,020 for a family of 2
  • $20,160 for a family of 3
  • $24,300 for a family of 4
  • $28,440 for a family of 5
  • $32,580 for a family of 6
  • $36,730 for a family of 7
  • $40,890 for a family of 8

As long as your MAGI is between 100% and 400% of the FPL for a given household size, you will qualify for health insurance subsidies under the ACA. If you live in states that expanded Medicaid, and you make less than 138% of the FPL, you qualify for Medicaid based only on your income. (Medicaid is a combined state and federal program to assist those with very low incomes and resources.)

In states without Medicaid expansion, an individual with a MAGI between 100 and 400% FPL ($11,880 – $47,520), or a family of 4 with a MAGI between 100 and 400% FPL ($24,300 – $97,200), will qualify for subsidies under the law. In states that expanded Medicaid, the lower limit to obtain subsidies would be $16,394.40 (138% FPL) for individuals or $33,534 (138% FPL) for a household of four respectively. The upper limits are the same regardless of where you live.

Subsidy “Cliffs” and the Premium Tax Credit

The early retirement blog, Root of Good, offers further explanation of the lower end (<100% FPL) and upper end (>400% FPL) “subsidy cliffs.” Having MAGI fall under or go over these “cliffs” could have dramatic effects on health care choices at the lower end and costs on either end.

This concept of cliffs is very important. It can also be difficult, as your 2017 subsidy is based on what you will earn in 2017, not what you have earned in 2016. Care must therefore be taken to estimate future earnings with accuracy and monitor earnings closely for those near these “cliffs.”

On the lower end, you would most likely want to ensure that your MAGI is at least 100-138% of the FPL, depending on your state of residence. Not doing so could have two negative consequences. Either of these problems should be relatively easy to avoid for early retirees by either earning a small amount of income or doing Roth IRA conversions to increase MAGI.

The more obvious is that having a very low MAGI would push you into Medicaid. This is undesirable for most adults who can afford private insurance because many providers do not accept Medicaid patients. This effectively limits your choice of health care providers.

There is also a less obvious reason to be careful about keeping MAGI above the lower end cliff. Imagine a scenario where you enroll in a plan at the beginning of the year expecting it to be subsidized. However, by year’s end, MAGI does not meet minimum requirements to receive a subsidy. You would be on the hook for the full cost of the insurance plan purchased. You can not retroactively enroll in Medicaid, even though the very low income would have qualified you for it.

On the upper end, the “cliff” is a bit more intuitive. If your MAGI exceeds 400% of the FPL, you no longer qualify for any subsidies. As long as you are under the upper limit for receiving ACA subsidies, you are guaranteed to not pay greater than 9.69% of your MAGI in medical insurance premiums. The Premium Tax Credit would cover any dollar amount greater than this cap.

Resource: How to Access Traditional Funds in Early Retirement

Going over the cliff could have major consequences, especially for those living in states with high health insurance costs. Because the Premium Tax Credit is completely phased out for those with MAGI over 400% of FPL, there is no limit on the upper end that they could pay for health insurance premiums. Therefore, making only $1 too much — and losing the tax credit — could effectively cost thousands of dollars in excess health insurance premiums.

Using the Premium Tax Credit to Limit Insurance Premiums

As long as MAGI is kept between the upper and lower limits, the Premium Tax Credit can be utilized for two purposes.

By at least keeping MAGI under 400% of FPL, a household can limit the maximum that they will pay for health insurance premiums. By keeping MAGI as close to the lower end limit of 100-138% of FPL, an early retiree can optimize the credit and minimize the amount that they pay for medical insurance premiums. The chart below, taken from The Kaiser Family Foundation, shows the maximum percentage of a person’s income that a person will be required to pay, based on what their income is as a multiple of FPL. Any amount over the cap would be covered by the Premium Tax Credit.

aca

Using Cost Sharing Reductions to Minimize Health Care Expenses

The second ACA subsidy is the Cost Sharing Reduction subsidy. This is reserved for those with lower incomes, ranging from 100-250% of FPL. To qualify for this subsidy, a household must be enrolled in a “Silver” level plan.

The Cost Sharing Subsidy provides a discount to help low income households pay for deductibles, copayments, and coinsurance. Normally, “Silver” level plans pay 70% of health expenses, with the other 30% of costs covered by the enrollee. This subsidy can lower the amount paid by the individual to as low as 6% of costs, with the subsidy covering up to the other 24%. That can offer substantial savings — up to 80% of out-of-pocket expenses — for those with the lowest incomes.

The following chart, also taken from the Kaiser Family Foundation, shows the effects of the Cost Sharing Reduction subsidy on increasing actuarial value and the actual dollar limits on annual out of pocket expenses for those that receive it.

For those with MAGI between 100-200% FPL, this subsidy can be large. For those with MAGI between 200-250%, the benefit is less valuable, before phasing out completely for those with MAGI >250% FPL.

aca2

Putting It All Together

The American tax code is very favorable to early retirees. The ACA is an expansion of the tax code, which also benefits early retirees with low incomes. Early retirees can use their unusual situations to pay lower taxes during their careers and in retirement. Likewise, they can use the ACA to their advantage by utilizing subsidies provided to limit health care costs, until they become eligible for Medicare.

In a worst case scenario, early retirees can limit their recognized income (defined by MAGI) to 400% FPL. That will cap the amount they can be required to pay for health insurance premiums.

This alone is a huge benefit for those living on a budget, especially since inflation in health care expenses has regularly outpaced the general inflation rate. Without this cap, health care costs can quickly grow to a disproportionate level of an early retiree’s budget, or wipe out their savings.

Are you an early retiree looking to optimize the law to pay minimal health care expenses? Well, this can be accomplished by keeping MAGI to between 100-250% FPL. This qualifies a household for both Cost Sharing Subsidies and a more substantial Premium Tax Credit. Doing so will greatly reduce medical expenses by limiting both health care insurance premiums and out-of-pocket expenses.

It is important to understand that the key factor determining ACA subsidies is income, relative to poverty level. The ability to take money from savings, Roth IRA accounts, or basis from taxable investments allows for creativity in creating cash flow that allows for spending well above these amounts, without recognizing a high income as captured with MAGI.

The post How ACA Subsidies Can Benefit Early Retirees appeared first on The Dough Roller.



from The Dough Roller http://ift.tt/2iA6EPp

Monday, December 26, 2016

Guide to Hammock Styles and Designs by Derek Hansen

How To Roll Over a 401(k) to an IRA in 5 Easy Steps

In the past, we have looked at whether you should roll over your 401k to an IRA when you leave a job. Well, when I left my job a few years ago, I decided to go forward with a 401(k) rollover and transfer the retirement account to an IRA.

The good news is that rollovers are really easy to do. You do have to be careful, however, to avoid a few traps that could cost you a small fortune (I’ll cover those traps below). A 401(k) rollover requires just two steps: (1) decide where you want to open your rollover IRA account, and (2) initiate the transfer of your retirement account from your 401(k) to the new IRA. Let’s take a look at each of these steps in some detail.

401(k) to IRA Rollover Checklist

Here are the steps to transfer a 401(k) to an IRA:

  1. Confirm that a Rollover is an Option: A 401(k) can be rolled over to an IRA. If you have or are considering other types of retirement accounts, check out this handy IRS rollover chart.
  2. Decide: Make sure that a rollover to an IRA is the best decision, keeping in mind that there are other options.
  3. Open an IRA: Decide where you want to open an IRA (we cover several options below).
  4. Initiate the Rollover: Don’t be intimidated. The process is easy as you’ll see below.
  5. Invest: Once your 401(k) funds have been transferred to your IRA, make sure they are invested in accordance with your investment plan.

Now, let’s take a deeper look at each of these options.

Is a Rollover IRA Right for You?

When you leave a job with a 401(k), you generally have several options when it comes to your retirement account:

  • Leave the money in the 401(k). Depending on your balance and your former employer’s plan, this may or may not be an option. If it is, and if you like the 401k’s investments, leaving your money where in the 401k is a reasonable option. It’s what I did with one of my 401k accounts.
  • Transfer the money to the 401(k) at your current employer. If you’ve taken a new job with a company that offers a 401k, you may be able to transfer your old 401k to your new retirement account. If you like the new 401(k)’s investments, this option allows you to consolidate all of your retirement investments into a single 401(k).
  • Rollover the 401(k) to an IRA. This is the option we’ll focus on in this article. The one big advantage is that you decide where to open the IRA, so you have complete control over your investment choices.

Open an IRA

Before you can roll over a 401(k), you must first open the correct type of IRA account. There are several options here, and the three most popular choices are a brokerage account, mutual fund account or a robo-advisor.

Brokerage Account

Transferring a 401(k) to a brokerage account is ideal if you want to invest in a variety of stocks, bonds, and ETFs. Discount brokers now charge just a few dollars for equity trades, and most rollover IRA accounts have minimal (if any) fees. Having used Scottrade for my SEP IRA, I can attest to just how easy it is to buy and sell investments online.

As you review the best options for your retirement account, you’ll want to consider several factors. First, make sure the broker offers the type of IRA account you need. If you are opening a standard rollover IRA, you should find that every major online broker offers this type of account. For specialty accounts like a SEP IRA, however, you’ll find many brokers that do not offer such an option.

Second, you’ll want to evaluate fees. The fees to consider include both account maintenance fees and trading fees. Given the competition today among brokerage firms, you will find many low-fee options.

Learn More: Are Low Cost Investment Advisors a Myth?

Third, you’ll want to look at the trading tools. Many online brokers now offer virtual trading accounts, where you can practice trading without putting your money at risk. The best brokers also offer video tutorials on everything from evaluating stocks to trading options.

With these factors in mind, here are several top-rated brokers to consider:

  • OptionsHouse: If you are looking for low cost, OptionsHouse is arguably the best choice. There are no maintenance fees and commissions are at rock-bottom prices. For example, stock trades are a flat $4.95.
  • TradeKing: You get the same low-cost equity trades of just $4.95, and excellent trading tools.
  • TD Ameritrade: For a more traditional, full-service broker, TD Ameritrade is a top choice.

Mutual Fund

You can open a rollover IRA directly with a mutual fund company. I have one with Vanguard. A mutual fund IRA is a perfect choice if you plan to invest only in mutual funds and ETFs offered by one mutual fund company. Why? Because the fees will be the lowest you can find. If you want to invest outside of a single mutual fund company, however, a brokerage account is the better option.

If you want more information on mutual fund IRAs, check out Fidelity and Vanguard.

Robo Advisor

There are now several automated investment services, sometimes called robo advisors, that offer IRA accounts:

  • WealthFront: I’ve had an account at WealthFront and am very happy with the service. The site is easy to use and offers very low fees.
  • Betterment: I’ve also had an account at Betterment. It offers a service very similar to Wealthfront, including Rollover IRAs.
  • TD Ameritrade Essential Portfolios: Finally, TD Ameritrade has just rolled out its own automated investment service with features similar to Wealthfront and Betterment.

Resource: How to Calculate the Value of Your 401(k) or IRA

How to Initiate the 401(k) Rollover

After you’ve decided where to open your IRA, the next step is to initiate the 401(k) rollover. Here are the steps I’ve taken to roll over my 401k to an IRA:

  1. Call your 401k Administrator: The very first thing I did was call my 401(k) administrator. My account was handled by Fidelity, so a call to customer service provided me with all the information I needed. The key questions to ask are whether there are any fees for rolling over a 401(k), and what forms you need to initiate the transfer. You can also speak with the person at your former employer who handles retirement accounts. However, in my experience, they will end up referring you to the company that manages the 401k(k)
  2. Call your IRA Administrator: Whether you’ve chosen a brokerage, mutual fund company, or robo-advisor for your new IRA, I’d highly recommend also calling them before initiating the transfer. I like to confirm what they need in order to complete the transfer.
  3. Initiate a Direct Transfer: There are two ways to roll over a 401(k) into an IRA: Direct transfer or check. I’ve always used the direct transfer method, personally. It’s easier since you never have to physically handle a check. Plus, it avoids the possibility of the IRS thinking you have taken an early distribution from your 401(k) — triggering taxes and (potentially) a 10 percent penalty.

Once you initiate the transfer, keep an eye on your accounts to make sure the rollover occurs without a hitch. These can take a few business days, and it always makes me nervous. Once the transfer is finished, your 401k rollover is complete. Now, you’re good to go!

Have you ever rolled your 401(k)? What was your experience and would you recommend it to others?

The post How To Roll Over a 401(k) to an IRA in 5 Easy Steps appeared first on The Dough Roller.



from The Dough Roller http://ift.tt/1ElEQwO

Friday, December 23, 2016

A Review of myFICO

myfico-logoMyFICO, a division of Fair Isaac, is an excellent place to obtain and monitor your FICO scores. For new customers, myFICO offers low cost and free trial options to obtain your FICO score online, from the company that created the FICO score.

There are a couple paid packages to choose from, depending on your credit tracking needs. Here is what myFICO has to offer:

FICO 3B Report (one-time report)

  • Get a one-time report from all three credit bureaus
  • Instantly access various scores and options, including those most commonly used for mortgage and auto lending, as well as the new FICO Score 9

FICO Essentials 1B (basic monthly tier)

  • Receive and access your initial report and scores immediately. You’ll receive an updated report and scores monthly.
  • Monitor your credit report at Equifax as well as your FICO 8 score
  • Access a number of score calculations, including the new FICO Score 9 and other mortgage/auto lending scores
  • Watch your Equifax progress with the FICO Score 8 historical tracking graph
  • Get notified you when you reach your target score, or when you qualify for a better interest rate
  • Receive alerts you when unexpected changes to your credit report cause your FICO score to drop

FICO Ultimate 3B (upgraded monthly tier)

  • Receive and access your initial three reports and scores immediately. You’ll receive updated reports and scores from all three bureaus quarterly.
  • Monitor your credit reports at all three bureaus, as well as your FICO 8 score.
  • Access a number of score calculations, including the new FICO Score 9 and other mortgage/auto lending scores
  • Watch your progress across all three bureaus with the FICO Score 8 historical tracking graph
  • Receive identity theft monitoring with your membership

myfico3

Both of the monthly service options also include the following features, standard:

  • Lost Wallet Protection: This provides coverage for credit cards, passports, military ID cards, travelers cheques, drivers’ licenses, checkbooks, insurance cards, and more. Restrictions may apply.
  • $1 Million Identity Theft Insurance: If you become a victim of identity theft, they’ll reimburse covered expenses related to credit restoration (this includes legal fees, lost wages, and more) — up to $1 million. See myFICO.com for more information.
  • 24/7 Full-Service Identity Restoration: If an identity thief misuses your personal information, myFICO is available 24/7 to help. Their certified resolution specialists will help you every step of the way.

Seeing It Allmyfico2

One of the things I really like about myFICO.com is that it doesn’t just give you your score. The site also explains why your score is what it is (good or bad). This information can help you start the process of improving your score.

myFICO.com will give you more information about each factor that is either helping or hurting your credit score. You also receive tips on how to improve those factors that may be keeping your FICO score down. For example, my score is impacted by past inquires and my amount of debt/opened accounts. Both of these were identified by myFICO.com, which gives me a clear indication of what I need to work on if I want to improve my credit score.

You can also look within the report itself (not just the score) to see which items are impacting your report. myFICO will tell you exactly how negative or positive these individual accounts may be to your credit report as a whole.

Planning Ahead

Another great feature of myFICO.com is that they allow you to use their FICO Score Simulator, to determine how future moves will impact your credit. This information can be really useful if you are looking to buy or refinance a home, get another credit card, or perhaps take out a car loan.You can see exactly how that new report will impact your score with each bureau.

myfico

Of course, you can get your free credit report from annualcreditreport.com, too. If it’s just your credit report you’re after, that’s the place to go. But it’s still nice to get your credit report along with your credit score at myFICO.com.

Related: How to Get Your Totally Free Credit Report

What’s particularly nice about myFICO.com, though, is that it presents your credit report in an easy to read and understand format. The site breaks down your credit report into five separate screens that cover the following topics: (1) Credit at a Glance, (2) Accounts, (3) Inquiries, (4) Collections, and (5) Public Records.

In addition to showing you any missed payments and length of credit history, it also shows your total debt, number of accounts opened, recent inquiries, and more. You then can easily move from page to page to see everything in your credit report.

When reviewing your report, it is important to carefully review the accounts section. This will show you if there are accounts opened that you don’t know about. It will also show you if any creditors have reported missed or late payments. If you think there is an error in your credit report, myFICO.com offers form letters you can use to dispute information in your report.

To get your FICO score and learn more about tracking your credit, check out the official myFICO website.

The post A Review of myFICO appeared first on The Dough Roller.



from The Dough Roller http://ift.tt/2hhGCyn

Hiking to Georgiana Falls in Franconia Notch

Enter for a Chance to Win a FREE Sierra Designs High Route Tent

1-high-routeThe Sierra Designs High Route 1 FL Tent (MSRP $299) is a 2 pound 5 ounce, one-person trekking pole tent that’s easy to set up and has a lot of interior space. A double-walled tent, it has an inner tent that is set up after the rainfly so it will never get wet in the pouring rain. While not unique to the High Route tent, it’s a feature that you’ll appreciate immensely if you’ve ever had to put up or take down a backpacking tent in the rain. For a complete review and more photos, click through to my review. 

Deadline to Enter

The deadline to enter this raffle is Tuesday, December 27, 2016, at midnight PST.

  • All raffle entrants will have one chance to win.
  • A winner will be selected randomly from all valid entries.
  • The winner will be listed on our Raffle Winners page.
  • Please keep everything rated G.
  • The prize winner can live anywhere that has postal service (including international.)
  • If you have any questions, leave a comment.

To Enter

To enter this random raffle for a chance to win a Sierra Designs High Route 1 Person Tent, answer the following question:

Which of these features are a MUST-HAVE, a NICE-TO-HAVE, or a DON’T-WANT when buying a MULTI-DAY Backpack? Please only use these three values.

  • a MUST-HAVE means that you wouldn’t buy a backpack without it.
  • a NICE-TO-HAVE means that the feature is not essential
  • a DON’T-WANT means that you’d reject a backpack with the feature

The features:

  1. Adjustable torso length?
  2. Adjustable hip belt or different hip belt sizes available?
  3. Load lifters?
  4. Top lid (also called a brain) with at least one pocket?
  5. Floating lid (a top lid with adjustable length straps)?
  6. Side water bottle pockets?
  7. Trekking pole holders?
  8. Rear stretch pocket for storing loose or wet gear?
  9. Ventilated back to reduce sweating?
  10. Hip belt pockets?

Incomplete or unintelligible answers will be disqualified.

Example response

Which of these features are MUST-HAVES, NICE-TO-HAVES, or DON’T WANTS when buying a MULTI-DAY Backpack?

  1. Adjustable torso length? Must-Have
  2. Adjustable hip belt or different hip belt sizes available? Must-Have
  3. Load lifters? Must-Have
  4. Top lid (also called a brain) with at least one pocket? Don’t Want
  5. Floating lid? Don’t Want
  6. Side water bottle pockets? Must-Have
  7. Trekking pole holders? Nice-To-Have
  8. Rear stretch pocket for storing loose or wet gear? Must-Have
  9. Ventilated back to reduce sweating? Nice-to-Have
  10. Hip belt pockets? Must-Have

Please answer in a comment to Enter.



from Section Hikers Backpacking Blog http://ift.tt/2i03HEo

Mid-Atlantic Mountain Works Marcy 20 Quilt Review

Ragged Mountain Intervale Gaiters Review

Readers Choice Hiking and Backpacking Gear Awards – 2016

2016-readers-choice
Thousands of SectionHiker.com readers provided input for this year’s Readers’ Choice awards which are based on reader recommendations collected during the reader surveys, gear raffles, and articles we publish year-round. Want to have your voice heard? Be sure to participate in our bi-weekly reader surveys and sign up for the weekly SectionHiker.com newsletter so you never miss an opportunity to win great gear!

Reader Recommended Multi-Day Backpacks

Reader Recommended Backpacking Tents, Hammocks, and Shelters

Reader Recommended Car Camping Tents

Reader Recommended Sleeping Bags and Quilts

Reader Recommended Sleeping Pads

Reader Recommended Backpacking Stoves and Cook Pots

Reader Recommended Trekking Poles

Reader Recommended Water Filters and Purifiers

Reader Recommended Headlamps

Reader Recommended Rain Jackets

Reader Recommended Hiking Socks

Reader Recommended Hiking Underwear

Reader Recommended Hiking Pants

Feel free to leave a comment below if I missed any gear that you feel should be added to this list of reader recommended products. Also be sure to participate in future Section Hiker Raffles and Reader Surveys to voice your gear recommendations so other readers can benefit from your experience.

Support SectionHiker.com. If you make a purchase after clicking on the links above, a portion of the sale helps support this site at no additional cost to you.



from Section Hikers Backpacking Blog http://ift.tt/2hPQlwz