Twila Van Leer

Make The Tax Return Count: Save It

April 24, 2016 By Twila Van Leer

A higher percentage of people are choosing to put their refund into savings.

For a short time each spring, millions of Americans have a fleeting sensation of being rich. They have their tax return in hand and must decide how best to use it. More than ever, according to Prosper Insights, they are opting to put it in the bank.

Refunds Used To Improve Financial Health

“Americans this year see refund season as a time to improve their financial health. Money saved is spending potential down the road,” said Matthew Shay, president of the National Retail Federation, which sponsors the survey.

Plans For Return

The NRF’s annual Tax Returns Survey indicated that 65.5 percent of those contacted expected a return and some 49.2 percent of those had plans to tuck the return into their savings as a means to improve their overall financial health. That is the highest percentage who are of that mindset since the NRF began conducting the survey. Other options include paying down debt or making large necessary purchases. Some 22.4 percent said they would use the return for everyday expenses and 8.3 percent looked forward to an annual splurge that they have had to bypass for the major part of the year.

Young Adults More Likely To Save

In the 18-24-year age group, the percentage of those wanting to save the return is even higher at 57.3 percent. The percentage dips to 52.3 percent in the 25-34-year age group, but that’s still more than half. These younger workers apparently see the tax windfall as a chance to build savings without diminishing their usual income.

Plans For Filing

With the mid-April deadline fast approaching, it is evident that the majority of Americans, 66.9 percent, are filing online. Almost 40 percent are preparing their own with the help of computer software. Only 14.2 percent said they have filed manually or plan to do so. Only 21.4 percent have hired or will hire a professional to get the job done, while 16.1 percent have called on a friend or relative to help with the job.

Two Steps Toward Freedom From Credit Card Debt

April 23, 2016 By Twila Van Leer

Balance transfers help you get out of credit card debt.

There are perfectly legitimate ways to reduce the interest and ultimately pay off credit card debt. Personal finance experts suggest you use them.

First Step

Find a card that offers a 0 percent introductory balance transfer promotion and transfer your balance to it. These cards often offer new customers as much as 18 months during which no interest is charged on the transferred balances. The experts consistently track all the cards to find that ones offering these terms and there are reviews that are available to the public. Check bankrate.com.

It pays. Think of it: on a $10,000 balance, $100 to $200 of your monthly payment is sucked up by interest, leaving only about $50 to be applied to the principle.

Second Step

After you have found a card that will charge no interest for a certain period of time, use that time to break free of the debt. Continue to make the payments you would have done previously. Add a little if possible. You will see the overall debt dip very quickly.

After having been swimming upstream trying to make headway against your credit card debt, you’ll see immediate improvement. There simply is no way to make inroads until the high interest can be eliminated as a factor. Use this formula and then repeat the process with additional credit cards to see real progress.

Paid Parental Leave Largely Ignored

April 22, 2016 By Twila Van Leer

Fear of job loss factor in ignoring parental leave. — Fear of loosing a job a factor in people not choosing to use parental leave.

More states are joining the effort to require employers to provide paid maternity leave, but the programs seem to be vastly underused, according to Business Insider. A growing number of employers are opting to provide the service even if their states do not require it. But surveys show that the programs are not being used to their potential. For instance, in California, where parental leave will be paid for six weeks at 55 percent salary, only 25-40 percent of eligible mothers use the leave.

The benefits of being paid at least a percentage of income for several weeks to welcome a new family member should be encouraging. Studies show that there are increases in employee morale, healthier babies, better bonding and fewer problems down the road that require state assistance.

So why are employees not taking full advantage of the option? Studies have consistently shown the following as reasons:

People Fear They Will Lose Their Jobs

In some cases, discrepancies between state and federal laws mean that the employee may have to choose between the paid leave and job loss. Gaps between the federal Family Medical Leave Act, which has guaranteed job protection for some, leaves other employees vulnerable. The act ensures job security up to 12 weeks of unpaid leave, but only for those who work at least 1,250 hours per year at businesses with at least 50 employees. Statistics show that more than half of all American workers are employed by small businesses that don’t meet the requirement.

The Possibility Of Negative Career Outcomes Deters Many

Even if they have FMLA assurance that their job will be protected, there is subtle evidence that employers may discriminate against workers who accept the leave. The New York Times reported survey results that showed women, after passage of FMLA, were 5 percent more likely to keep their jobs, but 8 percent less likely to get promotions. Men who take advantage of the leave may get negative performance reviews and there is a perception that workers of either gender are less committed to their jobs if they stay home for awhile after the birth of a child.

Many Workers Are Not Aware That They Are Entitled To Paid Parental Leave

In California, 12 years after the state initiated its paid leave provisions, only 36 percent of workers were aware of the program, according to paidfamilyleave.org. The organization’s survey also showed that those in the age group 18-29, Latinos, less educated workers and those in lower income brackets – those most likely to benefit from the program – were not aware.

The question of paid maternity leave is gaining momentum, but these obvious flaws must be addressed before it will be a viable option for the many Americans who work during the childbearing years.

Preparing For Your Career

April 21, 2016 By Twila Van Leer

The more education the broader range of jobs which leads to greater earnings. — Higher education leads to greater earnings.

“What are you going to be when you grow up?” It’s the standard question kids get from the time they are able to converse. The answer, though they don’t have any way of knowing it, will make a huge difference in their lives.

Used to be most boys opted for jobs as firemen or star-quality quarterbacks. Girls for a long time were limited to teaching and nursing. Now there are dozens of job options for children of either gender and preparation for them runs the gamut, from high school education through years of graduate work. Likewise, the income they can expect has a wide range. The tales of high school dropouts who made fantastic fortunes are few and far between.

Career Preparation Begins In Elementary School

Experts can reasonably predict how successful a child is going to be based on performance in grades K-12, although, of course, there are exceptions. Many job opportunities are sidelined along the way, placed off-limits to children who don’t see the connection between education and the future in the job market. A serious approach to the foundation years of education will help a child and the support and guidance of parents can make a huge difference. Ideally, however, children should be advised that money is not the only reward for work. Satisfaction in the activity a child chooses to pursue is as important as what they can earn.

The More Education The Greater The Earnings

Logically, a child needs to know that the more education they get, the broader the range of jobs they will qualify for and the greater their earnings will be. If they don’t finish high school, for example, the jobs that are available include such things as waitressing, farm work, fast food preparation, custodial jobs or highway maintenance, will pay from $1,583 to $2,500, according to standard listings.

High School

A high school diploma will generally offer entry into such jobs as bank teller, construction, data entry, child care, military, travel agent and others. The pay range is $2,049 per month to $3,494.

Vocational

A vocational degree (two years or less of post-high school education) in fields such as auto mechanic, cosmetologist, machinist, plumber, welder, etc., increases the range from $2,040 to $3,666.

Associate

A two-year associate degree ups the ante. Jobs such as dental hygienist, office manager, paralegal, nurse or real estate agent are opened up., with pay ranging from $3,205 to $5,759.

Bachelor’s

A bachelor’s degree is required for accountants, teachers, elementary teachers, flight attendants, social workers, marketing managers, news reporters, graphic designers, meteorologists and many other professional jobs. Pay ranges from $3,154 to $7,859.

Master’s

A master’s degree prepares secondary teachers, physical therapists, psychologists, engineers, guidance counselors, librarians and speech pathologists and other specialized fields, with pay from $4,479 to $7,318.

Professional

The step up to a professional degree is required for college professors, dentists, lawyers, optometrists, pharmacists, veterinarians, etc. The pay ranges from $4,500 to $12,645.

Medical

Medical degrees take several years of very expensive training beyond a bachelor’s degree, but the wages are commensurately higher, beginning at an average of $14,500 for a pediatrician to $15,246 for a general practitioner.

There are, obviously, dozens of variables that enter into the equation, but the general truth is that the better, highest-paying jobs go to those who are educationally prepared.

Retirement Planning With Bridge Jobs

April 20, 2016 By Twila Van Leer

Many elderly are turning to bridge jogs in their retirement. — Many elderly people are turning to bridge jobs in their retirement.

For many Americans, the jump from employment to retirement means getting a bridge job. A bridge job is a bridge between full-time work and retirement for workers who are approaching full retirement but are not quite ready to totally leave the workforce. For some, that interim step can last for years. Retirement is no longer an event, but a process.

Lifestyle Choice

Many workers actively plan for an “old-age” job for many reasons. About 60 percent of aging workers take the bridge job route, according to a University of Minnesota study. And it isn’t just those at the low end of the financial totem pole. Many who look at today’s longevity stats and their relatively better physical condition choose to work awhile longer as a lifestyle choice. A fair number even “come out” of retirement and seek a bridge job. They could get by on their retirement savings, but find life without work doesn’t mean as much. They enjoy the extra income, but view the time filled with useful activity as an even greater bonus.

Erosion Of Retirement Savings

It is now so common that some financial experts look at it as just another job in a lifetime career. Most of those in the workforce now see multiple jobs as part of the standard scenario. The erosion of retirement savings is a factor, as well. Defined-benefit retirement packages are becoming rare and programs such as a company-sponsored 401(k) are taking their places. The move to a 67-year-old retirement target, rather than 60 or 65 amounts to a reduction in benefits, experts point out.

Lower Paying But Flexible

Bridge jobs tend to be lower-paying than the careers the elderly are leaving behind, are less likely to add anything substantial to retirement cushions and may be less strenuous. But the advantages may include more time flexibility, including part-time work.

Rewarding

Some seniors find this as an opportunity to look for jobs in a sector in which they have had an interest, but bypassed during the usual career period in favor of things that paid better. One woman, for instance, went into an education job that was very rewarding to her personally, though it paid much less than her career job. Such teaching or tutoring jobs are very attractive to those whose professional work enhanced their value in an education setting.

Working well beyond what was once considered time to retire is a necessity for some, a welcome change for others. As long as health allows and mental capacities hold up, some opt to keep on keeping on. As one women well into her 90s remarked, “By the time I’m 100, my finances may be in better shape and I can consider retirement by then.”