Where is my Social Security Benefits Statement?

Contributed by: Melissa Parkins, CFP®

You may recall that Social Security benefits statements used to be mailed out to workers every year a few months before your birthday. Then in 2011, due to budget cuts, the Social Security Administration (SSA) decided to stop mailing annual statements to save money. Another change came in 2014 when the mailing of paper statements partially resumed. Since then, paper statements are mailed at five-year intervals to workers who have not signed up to receive their statements online. These annual mailings are sent to workers at ages 25, 30, 35, 40, 45, 50, 55, and 60 and over.

Why Wait 5 Years? Sign up Online!

An easy alternative to waiting every 5 years to receive a Social Security benefits statement is to sign up for a My Social Security account. You can follow the easy step-by-step directions Jim Smiertka shared in his recent blog on how to sign up.  Once you are enrolled, you will no longer receive paper statements in the mail at the five-year intervals. Instead, you will have access to them on a continual basis through your My Social Security account. You will need to log in first, but then your statements are always at your fingertips.

The Benefits of Tracking Your Benefits

No matter your age, reviewing these statements annually is important. They provide a valuable reminder of what you can expect to get back in the future from payroll taxes paid. It is also important to review your earnings history to make sure there are no missing years or discrepancies. It is better to catch it early and get it corrected than having it go unnoticed for years and having to deal with getting it corrected when it is time to apply for benefits. Whether you are still working or not, your social security benefits are an important part of your financial plan. Please share your statements with us on an annual basis so we can better help you plan for your future!

Melissa Parkins, CFP® is an Associate Financial Planner at Center for Financial Planning, Inc.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Melissa Parkins, CFP® and not necessarily those of Raymond James. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

Rising College Costs Make Early Savings Crucial

Contributed by: Melissa Parkins

If you have school-aged kids, what will a college education cost by the time they get there? According to J.P. Morgan Asset Management, if the cost of college continues to increase 5% each year, the cost will be more than double what it is today by 2032.  Colleges are spending more to attract students, hiring more to reduce student-to-faculty ratios, and receiving less financial support from the states.  Add these factors up and costs go up too. And with the rapidly increasing costs, we hear people asking more and more, “Is a college education worth it anymore?” The short answer is: Yes! The value of a college education is growing faster than the cost to attend. A college diploma opens the door to career opportunities, increased earnings potential, and job security.

Graph Source: JPMorgan Asset Management College Planning Essentials

Where do you Start Saving for College Costs?

Wondering how to begin saving for this huge financial goal? Well, you have to start somewhere, and it’s never too early. By starting to save early, you can take advantage of not only potential investment returns, but the power of compounding. Choosing the right savings plan and investment mix can help you maximize growth potential and also help on taxes (and who doesn’t want to reduce taxes?!). You may not make the goal of saving enough to cover all the costs, but check out this chart to compare the investment in college savings vs. taking out loans:

Source: JPMorgan Asset Management College Planning Essentials. This is a hypothetical example for illustration purpose only and does not represent an actual investment. Actual investor results will vary.

What are my College Savings Plan Choices?

There are many ways to set aside money for college expenses. Some families use traditional savings accounts while others use tax-advantaged accounts, like 529 plans. These give you the opportunity to grow your contributions faster than using a taxable investment account earning the same exact returns. Not only can you withdraw money for qualified expenses tax free, but many 529 plans offer state tax deductions as well. This chart illustrates the impact of investing in a tax efficient way for college:

Source: JPMorgan Asset Management College Planning Essentials. This is a hypothetical example for illustration purpose only and does not represent an actual investment. Actual investor results will vary.

What about other Ways to Pay for College?

Perhaps you’re hoping to rely on financial aid, grants, or scholarships? Remember, not all aid is free and not everyone qualifies. According to www.finaid.com, only 0.3% of college students receive enough grants and scholarships to cover all costs. And loans? Well, it costs more to borrow and pay interest than to save and earn interest. Not to mention the burden it causes not only to the student, but their family as well.

Source: JPMorgan Asset Management College Planning Essentials

Need help getting started on saving for college costs? We can work with you to find a plan that fits your family. Also, look for details to come out soon for our September webinar on Ways to Raise Money Smart Kids.

Melissa Parkins is a Registered Client Service Associate at Center for Financial Planning, Inc.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Investing involves risk and investors may incur a profit or a loss.

Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. This and other information about 529 plans is available in the issuer's official statement and should be read carefully before investing. Investors should consult a tax advisor about any state tax consequences of an investment in a 529 plan.

As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. The tax implications can vary significantly from state to state. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

How to Check Your Credit Report and What to Do if You See Something Unusual

Contributed by: Melissa Parkins

Back in April of this year, my husband and I finally decided we had waited long enough to refinance our mortgage. We contacted our lender, and he sent us a proposal that would allow us to drop our interest rate 0.625%. We were very pleased and agreed to move forward right away. Much to our dismay, our lender called the next day to inform us that our credit score had significantly dropped (100 points in 12 months!) and he wouldn't be able to get us approved for a rate any better than what we have now. He sent us our credit report that he had pulled, and we found a fraudulent claim showing a past due account balance on a PayPal credit card – which we do not have! He advised us to contact the credit reporting company that was showing this fraudulent claim. When we did, we found out that it was opened using my husband's name and social security number, but someone else's address living in New York! Neither of us has even been to New York! If you find yourself in my shoes, here’s what to do:

Tips for checking your credit report

1.    Visit annualcreditreport.com to request your free credit report from your choice of 3 different agencies: Equifax, Experian, and TransUnion. Utilize all three. You are entitled to a free report from each of the three companies every 12 months.

2.    Set a reminder to pull your report with each agency annually. Stagger each of the 3 reminders, so you can check your full report once every 4 months to keep a closer eye on it.

3.    Review all information, including the basics like addresses, phones numbers, employers, etc. looking for any errors or discrepancies.

4.    Make sure you recognize all accounts, loans, credit cards, etc. on your report.

Fixing or disputing errors

First, contact the credit reporting companies directly and let them know what information you believe is not correct. You may be asked to provide supporting documentation as to why you are disputing the claim as fraud. In some instances (like ours) it may be hard if not impossible to do. What documentation do we have to show we never opened a PayPal credit card?!

Second, contact the fraud/security department at the company that provided the fraudulent information to the credit reporting company. We had to get in touch with PayPal. They will send their dispute paperwork that you will need to submit with any supporting documentation. Make sure you provide them in writing that the account was opened or charged without your knowledge, explain why you are disputing the information, and that you are requesting it be removed or corrected. Keep a paper trail for yourself as well.

Another question to verify is if the debt has been sold to a collections agency or not. If it has, make sure they will be notifying the collections agency that the debit is being disputed. And brace yourself! It could be a 90-day review process (or more!) before anything gets resolved. Set a reminder to follow up if you have not heard anything within the given timeframe. Once you have received a confirmation letter that the fraudulent claim has been discharged, make sure they have also closed the account in your name.

About 60 days after we submitted our dispute paperwork to PayPal, we received a much welcomed letter in the mail saying our request was granted and the fraudulent debt would be removed from our credit report! After having to learn the hard way, we will be monitoring our credit reports unfailingly every 4 months. Hopefully regularly monitoring of your credit report will save you from the time and frustration it took us to fix the error on our credit report!

Melissa Parkins is a Registered Client Service Associate at Center for Financial Planning, Inc. Melissa is a contributor to the firm’s blogs.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Melissa Parkins and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Raymond James is not affiliated with and does not endorse the opinions or services of Equifax, Experian, or Transunion. You should discuss any legal matters with the appropriate professional.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

Possibilities Conference Offers Insights on Aging

Contributed by: Melissa Parkins

I recently attended the Branch Possibilities Conference at the Raymond James home office in St. Petersburg, Florida. The theme this year was "Working with Aging Clients". I had high hopes of receiving quality information that I could bring back to our office, like many others have been able to do in past years. My time there exceeded my expectations. Not only did I have a great time away from the office (and in some warm and humid weather!), I met a lot of interesting and intelligent people, got to collaborate with other RJ associates and learned more than I expected to about opportunities at Raymond James, including new technology, that we hope to share with clients in coming months.

My top takeaways:

• I heard a lot about the work RJ has been doing regarding future quality of life. Their research was used by many different presenters at the conference. One of the main themes revisited throughout the entire conference was the three questions that can be used to predict future quality of life: Who will change my light bulbs? How will I get an ice cream cone? Who will I have lunch with? For more on how the answers to these questions can provide valuable insight on housing and quality of life issues, take a look at this blog by Sandy Adams, CFP®. These are three simple and innovative questions that clients, families and planners should be discussing to assess preparedness for long life in retirement.
• The value of debt, especially for an aging client, was another hot topic. I learned of the new lending options available for all clients based on securities through Raymond James bank (lines of credit, mortgages, etc.).  These new lending opportunities open up planning options for clients of all ages that weren’t present in the past.  We look forward to conversations with clients about these opportunities during meetings in the coming months.
• Social Security continues to be a hot topic as it relates to retirement income strategies.  We talk a lot about this with clients as they prepare for retirement.  The presentations at the conference connected a lot of dots for me personally, and we look forward to continuing to put Social Security strategies to work for our clients in the context of their lifelong retirement income planning.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Melissa Parkins, Registered Client Service Associate and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.

How I Set My Own Financial New Year’s Resolutions

 If you are like me, each year you make a list of New Year’s resolutions that don’t end up making it to spring time, much less the entire year… i.e. going to the gym, eating healthy, etc. Well, this year I plan to not only stick to my goals, but also add goals for my financial well-being to the list. Make improving your financial well-being part of your annual resolution procedure … and stick to it! In hopes of getting you going, here are mine:

I will make a budget, and use it to improve my spending habits

 This doesn’t have to be as gruesome as you think. Consider using a tool such as Mint.com that automates, aggregates, and updates for you. Track your progress monthly with their charts and see what areas you can cut back (like the Jimmy John’s sandwich that is oh so convenient to have delivered for lunch multiple times per week).  

I will spend less, and thus save more

• Take advantage of coupons, Groupons, or any other deals out there. I’m not saying become an extreme couponer like you see on TV (unless you have the time and energy for that), but there are easy potential ways to save on your expected purchases. Try a quick Google search for sales or price comparisons before you head out to make that buy.
• Don’t pay for pricey added features that you don’t use, just because you get a deal for bundling (i.e. cable, cell phones, internet). If you lead a busy life and don’t have the time to watch TV very often, consider a streaming option such as Netflix, Hulu, or Roku instead of paying for pricey cable.
• If you get an end-of-year bonus, put it into savings (or at least majority of it) instead of going on a shopping spree and spending it all in one day. For your job well done, treat yourself to something satisfying yet small in expense (maybe that Biggby specialty coffee you hardly ever buy because it’s expensive), then transfer the rest to savings. 

I will plan for future retirement

Take advantage of employer matching 401(k)s. If you get a raise for the upcoming year, consider increasing your 401(k) contribution as well. Then your increased income goes directly into your retirement savings instead of into your checking account, where it will be tempting to spend.

I will create a long term vision and strive to make it my future reality

Start an emergency fund (the Center recommends 3-6 months of expenses). This may take some time, depending on if you have one started. Once your emergency fund is sufficient, consider compartmentalizing your incoming savings for your long-term visions (click here for recent post about compartmentalizing).

The little things add up before you realize it, so strive to break the constant bad spending habits (the daily Jimmy John’s or Biggby coffee); but have fun treating yourself sometimes as well. Finding enjoyment while staying within your means will help you stick to your resolutions long term and may improve your financial well-being.

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Any opinions are those of Center for Financial Planning, Inc., and not necessarily of RJFS or Raymond James. C13-001741.

Center Family Picnic

Imagine your financial advisor, laying it all on the line in a grueling, high stakes battle … of a water balloon toss. Oh, we stop at nothing to make sure our team is ready, especially when it comes to picnics! The Center social committee organized a wonderful weekend gathering August 17th at Island Lake State Park in Brighton. The event was filled with good food, good company, and lots of your typical summer picnic games. And to put the icing to the cake, we couldn’t have had a more beautiful day for it.

About 50 people – Center team members and their families and friends – came out. Everyone contributed a dish or two to go along with the burgers and dogs on the grill, and we ended up with enough food to feed closer to 100 people!

Megaphone in hand, our Dan Boyce officiated the day’s games, including that water balloon toss that quickly turned into a water balloon fight. Next up was the 3-legged race, and last but not least was an egg & spoon relay race. There were also side competitions in corn hole, ladder golf, bocce, and a very intense game of sand volleyball. Some unexpected competitive sides came out, and spectators enjoyed watching the players diving all over the court.

Great memories were made with our Center family and we have the pictures to prove it! Overall, the first annual Center Family Picnic was a terrific success, and a tradition that will undoubtedly be repeated.

Our Favorite Cup

 When you’re reaching into your cabinet to grab a coffee cup, you’re likely looking for that one special mug. It fits just perfectly in your hand, maybe one of your kids made it for you, or maybe it holds special memories … but in any case, it holds your morning coffee. Well, here at the Center, we have a special kind of cup, too. Our clients will recognize them because the John Glick Plum Tree Pottery mugs are stashed in our coffee supply cabinet just for you. And just like there’s meaning behind your favorite mug, there’s also meaning behind the locally-made Plum Tree Pottery. Our social committee decided it was time to uncover the meaning with a field trip (we still get to do those … but now we don’t need a signed permission slip).

Just a few miles down the road from the Center office we found Plum Tree Pottery and artist John Glick. We have known John for years and he was happy to give us a tour of his studio, showroom, and lovely home. Speeding down 10 Mile Road in Farmington Hills, you would never guess that such a serene, peaceful home and studio were nearby. After we ogled John’s unique ceramic collections, trying hard not to break anything, we got to hear how passionate he is about his work (it’s not exactly financial planning, but not everyone can have as great a job as we do!). Our social committee had done it again, proving that though we love bulls, we don’t act like bulls in a china shop when you take us out of the office.  Check out www.johnglick.com to learn more about John and Plum Tree Pottery.

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Links are being provided for information purposes only.  Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the lsited websites or their respective sponsors.  Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.