Twila Van Leer

Millennials Shun Investment Markets

October 30, 2017 By Twila Van Leer

Millennials Investing — Millennials tend to shy away from the usual investment markets to a greater degree than other age groups

When it comes to personal finances, today’s Millennials tend to shy away from the usual investment markets to a greater degree than other age groups, according to research by Wells Fargo.

The bank surveyed more than 1,700 individuals relative to financial literacy and opinions about the investment markets. Twenty percent of those in the Millennial age group (20 to 36) said they would never invest in the markets. Another 53 percent said they would be uncomfortable making such investments.

That raises concern among the experts that the Millennials won’t be ready for retirement when it rolls around. The prevalence of student loans in the age group is a factor. The average debt is now $34,144, up 62 percent over the past 10 years. Repayment often runs well into the prime earning years.

Wells Fargo devised a Positive Financial Indicator to determine how well an individual is faring financially. The five attributes of those in good financial shape are: Having enough money to put some into savings; saving specifically for retirement; a perception of being in control of finances; taking an active role in setting and achieving goals; and the ability to pay monthly expenses without strain.

Those who score higher on the indicator tend to be happier and more confident about finances, the bank found.

The survey also indicated more healthy attitudes among the Millennials who communicate with parents and grandparents on financial issues.

Has Your Identity Has Been Stolen

October 29, 2017 By Twila Van Leer

Identity Theft — Learn how you can know that you are safe from identity theft.

With data breaches at large retailers and the Equifax credit rating company, it’s easy to feel jittery about how secure your personal finances may be. The highly publicized instances gave hackers access to the personal data of millions of Americans. So how do you know if your information is being used without your knowledge?

Unfortunately, it may be years before it is apparent that your ID is compromised. And the longer it goes unnoticed, the longer the crooks have to misuse your name, Social Security Number and other personal information for their own purposes.

Look for these signs:

If you get strange bills or statements that you can’t immediately identify, it may be the first signs of identity theft. Always open your mail even if it looks unimportant. An unfamiliar service provider or credit account may be your first clue. What you first think is junk mail may be a bill for services or goods you have no knowledge of.

On the other hand, be aware if there are irregularities in the bills you ordinarily receive. It may be that a criminal has changed the address on the account to help him or her to establish other accounts. If your expected regular mail stops, it is a sign that a change of address request has been filed to facilitate the crook’s use of your identity.

Odd charges on credit card or banking accounts are a signal that your information is being used by someone else. Credit card companies try to alert customers to unusual activity, but they can’t catch all of it. The fraud may start out small as the thief tests to see if the card is active. Some of the scammers keep their charges small to prolong the time before they are discovered and steps taken to halt them.

If you are denied money by an ATM, turned down for a loan or advised that your health insurance is being denied because you are over the annual limit, take immediate steps. Even if you think you are talking with someone who has a legitimate concern in your financial matters, never share a PIN by phone. Caller ID numbers can be spoofed.

If creditors and collection agencies start calling about late or missed payments, don’t shrug the calls off as errors. Get on the chase at once.

If you were expecting a tax refund or if the IRS notifies you that you filed two tax returns, that is a red flag. The Department of Justice knows that thieves have stolen billions of dollars from the U.S. Treasury by filing bogus tax returns using stolen identities. Verify that a caller asking questions about your taxes is a bona fide representative of the IRS before divulging any information.
You can get a free copy of your credit report if you are suspicious of activities surrounding your finances. If the report shows accounts with which you are not familiar, it’s time to start down the long and winding road to resolution of the theft of your identity. You should routinely check your credit report even if you have no reason to think your information is being used by someone else.

Understanding The Dow Index

October 28, 2017 By Twila Van Leer

When the Dow Jones industrial average goes up – or down – is that cause for you to celebrate – or mourn?

The Dow Index

The Dow is considered a symbol of either euphoria or despair for investors. But how much should you pin investing decisions on this fluctuating indicator of the country’s financial status? This summer the Dow hit a record high, for the first time in a year, which is considered a long time in that particular measure. The reasons, according to the gurus, included an economic slump in China and Britain’s vote to leave the European Union.

To put such things in their proper perspective, it might be well to understand the Dow Jones index and what it means to your personal finance efforts.

The index, initiated in May 1896, draws data from 30 big companies, which represent a broad selection of industries. On the list are large banks such as Goldman Sachs and JPMorgan Chase, industrial giants such as Caterpillar, Apple and Walt Disney Co. Of the original members, only General Electric remains.

To put this summer’s high into perspective, it didn’t represent any huge change for the better: just two-tenths of a percent above the previous high. In the six months before it hit the high of May 19, 2015, it hit a record 10 times.

Standard and Poor’s Index

Standard and Poor’s index, by contrast, has 500 members. The two indexes differ in how they value the stocks they track. Relatively small changes in just a few of the Dow stocks can make a difference.

The Dow is price-weighted, while the S&P is market-weighted. Member companies with the largest value on the stock market make the biggest impact on the index. Apple, the most valuable publicly traded company in the world at $531 billion, can move the index more than any other S&P member.

So, when the Dow goes up, what will it do to your funds? Probably very little unless the rise is significant. Don’t get too excited about the headline that says the “Dow is up” until you study more closely to see how much and why. And it’s the S&P average that means the most, since it has nearly 60 times more — $2.1 trillion compared with $36 billion – in its index.

Funds that are managed, which might be where your dollars fit, tend to track S&P more closely.

But for all its flaws, the Dow usually is right in line with the S&P. And the Dow tends to be more well recognized among investors. It offers a great at-a-glimpse of the market. As a gauge, it is safe to say then when the Dow is up, investors are up. When it’s down, they are down. It pays to pay attention.

Don’t Let Personal Problems Derail Your Career

October 27, 2017 By Twila Van Leer

Seek support from people outside of your work.

Face it. Life happens to everyone sooner or later. The trick is to sail some choppy personal waters without sinking your career.

Some practical advice:

Don’t bring your problems to work. Don’t waste your time and that of co-workers by talking about them. A trusted co-worker may share the information with bosses up the line in a perfectly innocent attempt to be helpful by letting them know why you aren’t performing up to snuff. Then it becomes a different game, possibly putting your job on the line.

Find emotional support off the job. Try to make the person to whom you turn for help, whether a close friend or family member or a professional, someone who has no links to your work. There are online forums that allow participants to talk about their problems while maintaining anonymity.

Find healthy ways to deal with the stresses that inevitably affect your work performance. It isn’t always possible to turn off the negative feelings that surround your problems, but try to focus on your assigned tasks. Exercise is a good way to combat stress. Regular trips to a spa or gymnasium or following a good-health regimen at home will help you cope.

Talk with your supervisor about the problem, but only in general terms. Ask for a little leeway, if necessary, to get through the worst of your situation. If you have a history of being a good employee it is likely you will be met with sympathy. There may be options such as telecommuting or changing hours.

Consider some time off if your problem requires your full attention for a while. Use sick leave, vacation or personal days if necessary. The Family and Medical Leave Act requires that employers give their workers job protection and unpaid leave in the event of a medical or family emergency. It is preferable to take a little time off than to let poor performance put your job in jeopardy.

Don’t put off professional help because of embarrassment. Professional counseling may be the answer to your dilemmas. Talking through your problems may open new possibilities.

A positive attitude helps. Self-talk, reminders that the current situation will pass, may get you through the day. Avoid negative thoughts as much as possible. Try to concentrate on solutions to your problems, not the problems themselves.

Personal problems can be distressing and the solutions sometimes are not perfect, but adding the loss of your job to the list can only exacerbate the situation. Do everything in your power to avoid it.

Equifax Fallout Begins

October 26, 2017 By Twila Van Leer

People who froze their credit to minimize financial damage in the wake of the hack of credit reporter Equifax are now realizing what that means.

The problem is massive. Equifax reported that 143 million Americans had their information, including Social Security numbers and other personal data, exposed in the hack. The company’s CEO resigned in the wake of the credit disaster and Congress is discussing how another such disaster might be avoided.

The aftermath is becoming apparent as people who reacted by freezing their credit try to buy things such as the new iPhone that is in high demand or other big-ticket items.

It is possible to unfreeze your credit if you are anticipating a large purchase and then freezing it again afterward. But that may take time and your credit is vulnerable during the interim.

Experts advise that you let the major credit bureau know several hours or at most several days before you apply for financing. The three bureaus are TransUnion, Experian and Equifax. You will likely be charged $3 to $10 for each action at each of the three bureaus.

Sellers, such as Apple and other wireless carriers, often asked for a credit report before they approve the sale of a new phone. The costs and the hassle of unfreezing and refreezing your credit information may make the acquisition of a new super-phone – or any other costly item – more trouble than it is worth to the consumer.

Citizens Financial Group of Providence, R.I., which runs the Apple financing program, has already announced that it will not new or existing customers who have frozen their credit, at least temporarily. Sprint, Verizon, 4:58 PM-Mobile and AT&T also run credit checks with the three credit agencies. Their policies vary, but it is one of the indications that the Equifax hack will affect the buying practices of many Americans.