Twila Van Leer

Watch Out For Scary Scams

April 3, 2016 By Twila Van Leer

Medicare

Medicare enrollment time is from Oct. 15 through Dec. 7, and there are scammers out there hoping they can trick you out of your Social Security/Medicare number while you are particularly vulnerable. Be wary of the caller who says he/she is a Medicare employee and that the agency is issuing new cards, that their records need updating or that they can help you with re-enrollment. Don’t you believe it.

Some of these scammers may say you have past-due medical bills. Genuine Medicare employees will never call and ask you for personal information over the phone. They will not visit your home pretending to solicit information the agency already has.

Utility Company

As the weather cools, such unscrupulous frauds may show up saying they are from the local utility company and claiming that you have unpaid bills. They may ask that you pay with your prepaid debit card, which makes it hard to trace. They may suggest that you pay cash and offer to send someone, supposedly a bona fide utility employee, to pick it up.

Again, don’t you believe it. Utilities don’t work that way. They will always send at least one and usually several reminders if you are truly behind, and they do not send employees to pick up payment.

Home Inspections

Another ploy that allows a scammer to dip into your financial resources is the man who shows up to “inspect” your home and supposedly finds serious repairs that need to be taken care of immediately. They may suggest that your chimneys, HVAC ducts or furnace need cleaning. Usually they don’t. Much better to rely on someone with whom you are familiar to do such upkeep.

Investment

At the final quarter of the year, many people are looking for little tweaks they can make to their investments, with an eye to improving their tax situation. If you receive invitations to free lunch seminars to be “educated” about investments, be aware you could end up paying dearly. Such gatherings often are sales pitches for bogus investments. Words such as “risk-free,” “guaranteed” or “limited time” may be clues that you are about to be scammed. Common investment hoaxes focus on oil and gas, precious metals, promissory notes, life settlements and long-maturity annuities. Before you head out for a free lunch, visit brokercheck.finra.org to learn about past lawsuits, bankruptcy filings and other possible irregularities.

Charity Organizations

When the holiday spirit begins to loosen purse strings, scammers come out of the woodwork by the droves. Last year, the focus was ebola. Every natural disaster brings out those who appeal to your humanity to help in the recovery process. Many of the scams are custom-designed for the elderly and they may solicit help for police, firemen or children. If you feel uncomfortable, ask the solicitor to provide you with materials about the suspect charity so you can study them before making a donation. Or go to give.org, charitynavigator.org or the agency in your own state that regulates charities. This information is listed at nasconet.org.

There are dangers of fraud and scam all the time, but especially in the next few months. Don’t start the holiday time of year by letting a scammer treat you to a trick.

Save Big Bucks On Airline Tickets

April 2, 2016 By Twila Van Leer

Prices for airline tickets are all over the place. If you want to fly right and for less, become savvy about making your purchases. It is possible to save a lot – up to $300 or more per ticket – if you buy when the prices are at their lowest.

Best Time To Buy

So, how do you know when that magical moment has arrived? CheapAir did some of the footwork for you. The company monitored air travel fees for some 5 million flights in 2014, comparing the cost of bookings from 320 days in advance of the desired flight time to just one day. The research pinpointed 47 days pre-flight, on average, as the time at which fares were likely to be at their nadir.

“Window” Opportunity

From 114 days to 27 days, however, were identified as a “window” of opportunity during which it is worthwhile to shop for the best airfares. If you wait until only 14 days before you plan to fly, the price may jump by an average of $174. By that point, the airlines know you are likely to pay what they ask. Booking too early, on the other hand, can raise the price by an average of $50 per ticket, the CheapAir review found.

Book Early

Of course, there are many factors that affect prices, including dates and destinations. The research organization suggests early booking for holiday and standard vacation times in the area in which you are interested. If your travel group includes more than four people and you want to be seated together, early booking will be better. Start checking fares once a week as soon as your plans seem firm, to get a sense of the market. If you see a good price, go for it. It is more likely to rise than to fall further.

Information is available from airfarewatchdog.com, cheapair.com or kayak.com, which regularly monitor airfares.

International Travel

Fares for international travel do not fluctuate as much as those for domestic flights. If you are leaving the country, book early. Sales open 335 days before departure, CheapAir says. About 90 days before the departure date, fares start rising rapidly. If Europe is your destination, book at least 276 days in advance to get the best price. The best opportunities for cheaper tickets to the Caribbean is 144 days in advance; to Asia, 318 days; Africa, 262 days; Mexico, 251 days; South Pacific, 244 days; Middle East, 213 days; Central and South America, 96 days.

Be Flexible

Allowing yourself a little flexibility can also save money. Booking flights with connections or those that leave either early in the morning or late at night are cheaper. Tuesday, Wednesday and Saturday are the days when fares tend to be lower.

Price Drop Rebates

Many airlines and travel agencies will give you a rebate if your flight’s price drop below what you paid. Often the rebate will come in the form of credits or vouchers. Sign up with Yapta.com to receive alerts about falling prices. But be aware that some airlines will charge a big fee for re-booking a flight to a lower price. If the fee outweighs the difference in the fare price, obviously, you don’t want to consider it. CheapAir offers a $100-per-passenger credit if the price of your ticket drops. That avoids a fee for rebooking.

Finding the best fare may take some time and effort, but the savings will make it worthwhile.

Are You Spending Too Much?

April 1, 2016 By Twila Van Leer

There’s nothing left of the holidays except the memories. And the bills. And if that has been painful, it may be time to take another good look at your long-term goals and make adjustments as necessary.

Studies show that Americans are spending more than ever. The average credit card debt is $5,000 to $7,700, depending on the source of your information. Student loans, mortgage or rent payments, cars, cell phones and other electronics and other recurring debts add to the pressure.

How do you know if you are spending too much? Here’s a list of guidelines that may help you decide.

Credit Card Debt

If you carry more credit card debt than you can pay off monthly, you may be on the brink. The interest is gobbling up money that you could be using for other things.

Retirement

If you are making no provision for retirement, that’s another red flag. Though you have plenty of company – a third of working age Americans are in the same leaky boat – you may be asking for a longer working time in the future. Most experts say you need to start saving 10 to 20 percent of your income starting in your 20s to meet retirement needs.

Housing

If your housing, rent or mortgage, is absorbing more than 28 percent of your income, that’s a danger sign. And your transportation costs should not exceed 15 percent. Vehicles depreciate fast. If you are over this limit, it could be time to go shopping for less car.

Children’s Education

The working years are the time to save money for your children’s education. Higher education debt has become a major stumbling block for many young (and not so young) adults. The average student will face a $33,000 debt load when he receives his degree. Being able to take care of some of the costs up front could make the transition into a career easier.

Health Insurance

Financial disaster is fairly predictable if you don’t have health insurance. A coronary bypass can cost more than $38,500. Just thinking about this and other medical emergencies that are part of life could give you a heart attack. With new government provisions, you could be paying penalties for not having health insurance, unless you qualify for an exemption. Better the cost of insurance than the cost of the penalties.

Eating Out

If your family has become addicted to eating out, you are paying more for food than you need to. A home-prepared lunch costs about a third what they will charge you in a restaurant. Ditto coffee. Some studies have indicated 60 percent savings when you eat foods you fixed yourself.

Emergency Fund

Not having an emergency fund is asking for trouble. The experts don’t all agree on how much a cushion is enough, but the recommendations range from three to 12 months of your income total. Don’t worry so much about the total you need as the need to get started. In a pinch, anything is a whole lot better than nothing.

As a rule of thumb, financial advisors say you should spend half your income on essentials, 20 percent for debt payment, retirement and savings and 30 percent on lifestyle choices. The guideline can have some flex, but is a good gauge to whether you are making good use of your financial resources.

Bottom line: Overspending and under-saving can be disastrous. Starting early to address budget concerns may allow for a more secure and trouble-free future. If you aren’t paying attention, now is the time to start.

Money Management Tips For 30 Somethings

March 29, 2016 By Twila Van Leer

Manage money carefully in your 30's. — Manage money carefully in your 30’s.

What you do in your 30s, personal finance-wise, makes a difference to what your retirement will look like. There are some common mistakes people make in their 30s that influence the future. Here are some of them:

Over-spending for children

What you spend on cute clothes, sophisticated toys and even educational apps must be subtracted from what you expect to live on after you are through working. Better to spend conservatively and save money for your children’s college funds.

Not discussing finances before marriage

Getting married without discussing finances can be destructive. If by your 30s you have not learned to negotiate financial options, you could be in trouble. Money issues can become serious marital conflicts, leading to divorce or ongoing clashes. Learn to talk about finances and how to set monetary goals together.

Ignoring debt

Coping with consumer debt well into your middle years can be worrisome. There are always excuses to burden yourselves with debt. Children and the ordinary crises of life are among them. But ignoring debt can come back to haunt you. Budget aggressively, live thriftily, earn as much as you can and try to anticipate retirement free of consumer debt.

Keeping up with the Joneses

Over-extending for things like a house and/or cars is another pitfall. Temper your desires to have everything and to give your children everything and you’ll find yourself better prepared to make do in your retirement years. People don’t really need a huge house and several vehicles to rear happy children. Keeping up with the Joneses occupies the minds of too many of those in their 30s. Remember that the Joneses probably are trying to keep up with someone else up the ladder. Be reasonable. Buy within your means and put something aside for later.

Not leaving a will

Make out a will or set up a trust for your kids and your spouse. Save them the hassle of trying to sort things out in case of your passing. Set up a power of attorney and power of healthcare so things don’t get sticky at that point. Ditto life insurance. If you unexpectedly leave your family when they are still depending on your income or time, you need life insurance, enough to cover their needs, not just the minimum usually offered by an employer. Consider disability insurance. In your 30s, the chances of becoming disabled are greater than early death.

Ignoring investments

Re-evaluate retirement goals now and again. By 30, your income probably has increased. Re-calculate to ensure that your retirement will support the lifestyle you want to retain. Pay attention to how your investments are performing relative to those goals. Readjust if necessary to meet goals and risk tolerance. Find a capable financial planner to help you.

Not starting a college fund when kids are young

Don’t wait until your child/children are ready to go to college to prepare financially for that expensive undertaking. Put money into an online savings account toward that eventuality. Find ways, if possible, to enlarge your education savings. Some adults at this time of life, too, consider going back to school to enhance their employment possibilities. Be certain to carefully study how much you can expect to gain by more schooling before you enroll. You could be making an expensive mistake.

Not pursuing other income opportunities

Diversify your income. The days are essentially gone when you could expect to work for one employer throughout your life. If you have a hobby that can be converted to income, pursue it. Job loss is no longer uncommon and you may need fallback sources to get you from one job to another. Taking good care of your personal finances in your 30s could pay big dividends down the road. Pay attention.

Be Wary of Fake Debt Scams

March 28, 2016 By Twila Van Leer

Be wary of bill collectors claiming you owe them money.

When a thief gets your credit card info and runs up a huge debt, who is responsible for paying? Some scammers are making an art out of trying to get the money from the card holder and there are steps you can take to protect yourself. The elderly are particularly vulnerable since they tend to be less savvy about electronic finance issues.

One unfortunate retirement-age woman found herself being dunned for $8,500 after someone named “David” used her credit information illegally. She received more than 60 calls over a three-week period, often late at night, as she was hassled to pay the debt. The harassment didn’t end until she hired a lawyer.

The Consumer Financial Protection Bureau (CFPB) reports that 8,700 similar complaints were filed with the agency over a 15-month period, half from elderly persons who reported unrelenting attempts to collect money they didn’t owe.

In the period from July 2013 to December 2014, the agency received overall 110,000 complaints regarding debt collection. The Federal Trade Commission lists such complaints as its most consistent industry problem.

The debt collectors report they are trying to collect some $756 billion in debt. It isn’t possible to estimate how much of that staggering total involves “false debt” claims. But based on complaints by those 62 and older, there are several identifiable tactics that collectors use to weasel money not owed from the elderly, according to an AARP magazine article. They include:

Common debt collector scams:

Threats to garnish Social Security or veterans’ benefits if the person doesn’t pay the claimed “debt.” CFPB experts say this is not possible. Garnishees from these government sources are only possible for delinquent state or federal debt such as unpaid taxes, student loans or government-backed mortgages. Alimony or child support payments also can be withheld from Social Security payments, but Supplemental Security Income benefits cannot be garnished due to any debt.

Pressure to pay medical bills that supposedly were generated by a late spouse. Widows are the frequent victims of this particular scam, which are purposely imposed on them when they are emotionally frail, just learning to cope with their loss. Or the scammers may make repeated attempts to collect debts that they falsely allege were owed by deceased family members.

Frequently repeated calls, offensive language and threats of public shame are among the scammers’ arsenal to intimidate so-called debtors into paying. The experts stress that persons being subjected to these annoying tactics should not respond under pressure simply to be rid of the annoyance. Verify the debt before even considering payment. Be aware that collectors cannot collect on debt that has expired under statute of limitations provisions. The period ranges from two to 10 years, depending on state laws.

There are instances of mistaken identity in which legitimate collectors simply have their information wrong. In some instances, they are able to collect from the wrong party because those being dunned are reluctant to provide identifying information over the phone for fear of identity theft. But if you think you may have wrongfully paid a debt under such circumstances, contact the CFPB and your state’s attorney general to report your concerns.

To protect yourself against fake collectors, follow these steps:

Ask for specific information about the alleged debt. If the collector fails to respond, you can assume it is a scam. Visit go.usa.gov/Fsge for information about bogus collectors.

Keep close tabs on your credit transactions. You are entitled to three annual free reports from the three major credit reporting firms. Visit AnnualCreditReport.com for information on obtaining these reports. Look for unrecognized debt in your name and report discrepancies immediately.

Visit go.usa.gov/FsY3 to get information about alleged debt. Dispute claims that are not correct. You can obtain sample letters from that address that you can use as patterns to report your disputes. Send the information by certified mail and with a “return receipt” to the collector and to the creditor. Copy to the CFPB, the Federal Trade Commission and your state attorney general.

If you are being dunned for alleged credit card debt, insist on written proof, such as statements detailing unpaid charges. If the collector claims medical debt, ask for documents detailing services, dates and names of providers. Cross-check with Medicare and private insurers.