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Thinking beyond fixed-income investments
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 Today, with interest rates at 60-year lows, it's extremely difficult to get the income that we need from traditional types of fixed-income investments. You can't just look at income in a vacuum; you have to take a look at the impact of inflation and taxes. In this month's video, Joe Chornyak discusses wise retirement investing and alternatives to fixed-income investments. |
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Organizing your finances: Before and after a personal loss
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The death of a spouse or life partner is one of the toughest events you can go through. Along with the emotional adjustment of continuing on without your best friend, there is additional stress involved in facing the relevant financial issues while you are still grieving. But there are things you can do now to help you through this difficult time. The following lists provide a framework for keeping your finances organized before and after a personal loss.
Preparing now to minimize stress later
- Keep a list of insurance companies, policy numbers, and social security numbers on hand.
- Store important documents-such as your marriage certificate, wills and trusts, and children's birth or adoption certificates-in a safe location for easy accessibility.
- Ensure that each spouse has a credit card in his or her own name or that you have a joint account in both names.
During and after the loss
- Notify others and seek advice. In addition to notifying your employer and your spouse's employer, be sure to contact the funeral director and your attorney, insurance professional, financial advisor, and accountant, so they can get started on paperwork and financial matters.
- Obtain at least 10 certified copies of the death certificate, so you can file for various benefits and change the ownership of investments.
- Continue to pay bills so you don't incur late fees.
- Cancel unwanted club memberships and magazine subscriptions.
- Retrieve your spouse's belongings from his or her workplace, and collect any salary, vacation, or sick pay owed to your spouse.
- Check with your credit card, bank, and loan companies regarding eligible death benefits.
- Change the ownership of bank and brokerage accounts.
- Discuss what to do with IRAs and employer retirement plans with your financial advisor.
- Contact the Social Security Administration to discuss eligibility for benefits.
- Obtain tax identification numbers.
- Talk with your attorney and accountant before transferring accounts or distributing assets, as you may or may not incur additional taxes at your spouse's death.
- Take advantage of health insurance benefits, such as COBRA.
Addressing personal financial affairs
Remember, you may need to take some time after experiencing a loss before making major financial decisions. Be sure to have a trusted advisor look over any financial decisions you are considering and to ask as many questions as necessary during this stressful time.
Be sure to contact Chornyak & Associates at 614-888-2121, toll-free at 877-389-2121 or chornyak@chornyak.com. We're to advise and help!
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Still time to support Pelotonia 12
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Hello Everyone, This is my third year participating in an experience that raises funds for a great cause and I need your help. With last year's support, I was able to raise close to $7,000 and achieve the event's "High Roller" status. To become a High Roller, a rider needs to raise over $4,000 and I was fortunate to become one of the 394 members of this group. With your help, we can get there again! 8,300 riders from 38 statesPelotonia is a grassroots bike tour with one goal: to end cancer. More than 10,000 supporters took part in Pelotonia 12 ride on August 10-12, 2012. In its first three years, Pelotonia has attracted over 8,300 riders from 38 states, over 2,800 volunteers, hundreds of thousands of donors and raised $25.4 million for cancer research. In 2011 alone, a record $13.1 million was raised. Because operational expenses are covered by Pelotonia funding partners, 100% of every dollar raised is donated directly to life-saving cancer research at The Ohio State University Comprehensive Cancer Center-James Cancer Hospital and Solove Research Institute. I am writing to ask you to help me raise funds for this incredible event. Large or small, every donation makes a difference. Improving lives through innovative researchUnfortunately, we all know someone who has been affected by cancer. One of every two American men and one of every three American women will be diagnosed with cancer at some point in their lives. By supporting Pelotonia and me, you will help improve lives through innovative research with the ultimate goal of winning the war against cancer. I would love to have your support, as this is truly a unique opportunity to be a part of something special. Your opportunity to offer supportWhen you follow this link, you can view my personal rider profile and a simple and secure way to make any size donation you wish. Think of this as a donation not to me, or Pelotonia, but directly to The OSUCCC-James to fund cancer research. Please consider supporting my effort and this great cause. The window for accepting donations is open until October 12, 2012! Thank you for the support! Sincerely,Joe Chornyak, Jr.
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40 ways to get the most out of your bank
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Debbie Dragon of depositaccounts.com presents an exhaustive list of considerations you should make when choosing a bank. Don't be afraid to make a change if your bank is letting you down in any way!
There is no bank or financial institution in existence that would be a perfect match for everyone. To make sure you get the best out of your bank or financial institution - you will need to put a little effort into researching your options before selecting a bank. Once you have selected the bank or financial institution, there are a number of things you can do in order to reduce your fees, increase your savings, and get all you can possibly receive from your banking relationship.
Here are 40 ways to get the most out of your bank:
Before you choose a bank
1. Compare savings rates
- If you are looking for a financial institution to save your money and earn interest, but need the money to be accessible - spend some time comparing different accounts at various banks and how much interest they pay.
2. Consider a credit union
- Credit Unions are different from banks in that members are actual owners of the institution. They tend to offer better interest rates and more consumer-focused services than a bank. Many credit unions have very loose eligibility restrictions.
3. Look into online banks
- Online banks typically offer higher interest rates than your local bank. Additionally, an online bank will be more likely to offer free checking accounts and more customer perks when compared to a small, local bank.
4. Make sure they're FDIC or NCUA insured
- When choosing a bank or credit union, understand whether the money is FDIC or NCUA insured; and make sure you understand the limitations to the insurance.
5. Check their financial health
- Although your deposits at FDIC insured banks and NCUA insured credit unions are guaranteed by the US government, going through a bank closure is still an unpleasant experience and can result in losing your high CD rates. You can reduce the odds of this happening to you by checking your bank's health rating.
Reducing and eliminating bank fees
Ideally, everyone could save their money at high interest rates or write checks from their checking account balances without ever having to pay a dime in fees to the bank. Since this isn't quite possible, here are some tips for reducing or eliminating bank fees to help you keep more of your money where it belongs - in your pocket!
6. Look for low early withdrawal penalties on CDs
- You want to save your money in a certificate of deposit that will offer the highest earnings while still providing a low early withdrawal penalty in case you need to take your money out of your CD earlier than expected.
7. Choose a credit union that belongs to an ATM network
- If you are someone who uses an ATM card regularly, you will want to choose a credit union that belongs to an ATM network. This allows you to make withdrawals from an ATM that is part of the network without paying a fee, even if you are away from home and your local credit union branch.
8. Choose a credit union that belongs to a shared branch network
- Frequent travelers may want to choose a credit union with a shared branch network, so they can conduct all banking transactions from any credit union or bank that belongs to the network just as they would in their home branch location.
9. Look for additional perks
- Check what balance or other requirements are needed with your bank or credit union to qualify for perks like free safe deposit boxes and free checks.
10. Avoid overdraft fees
- writing checks or otherwise withdrawing more money than you have is a costly mistake. For each transaction over your available balance, your bank may charge $20 to $40. Find ways to avoid overdrawing your account to stop paying overdraft fees - such as better budgeting or opting out of overdraft protection services. Also considering linking a savings account to your checking to provide overdraft protection.
11. Avoid other bank fees
- there are a variety of fees a bank may charge - from monthly maintenance fees to inactivity fees to fees for a certain number of transfers. The key to avoiding bank fees is to understand what they are charged for and what you can do to avoid paying them, such as keeping a minimum balance to avoid a monthly maintenance fee. If there are no requirements you can meet to avoid a fee - consider a different bank account that does not charge the fee.
12. Set up an HSA
- Health Savings Accounts allow individuals who have high-deductible health plans to save money for health expenses with tax-deductible contributions.
Higher returns and bigger rewards
When saving your money, you should always look for the highest return possible. When using a financial institution or financial product, you should take the time to look for solutions that offer rewards in addition to providing the service or product you need - it will help you get more for your efforts.
13. Open a rewards checking account
- If you need a checking account, you may as well find one that offers a great rate! Most rewards checking accounts offer rates that are significantly higher than traditional checking accounts. Some will also refund any ATM fees you incur during the month (up to a certain limit).
14. Get cash back
- Very few banks allow you to earn cash back on debit card purchases. Perkstreet Financial is one of the banks with nationwide availability offering this service. A checking account with Perkstreet allows you to earn up to 2% cash back on all debit card purchases and up to 5% in specific categories.
15. Use a credit card for your daily purchases in order to get rewards - Rewards credit cards are nothing new, and many people have mastered the art of using a credit card all month long for all of their purchases in order to accumulate rewards; and then paying it off in full when the statement comes to avoid paying interest. This is one of the best methods of getting more for the money you're already spending - as long as you are disciplined enough to pay your card off each month.
Please continue reading here. There are 25 more recommendations that you should consider, in the areas of technological advantages, and banking strategies.
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What's happening now
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Many credit-card companies are offering cards with teaser rates (some at 0%), and those rates have longer lives-an average of 14 months compared with nine months in 2009.
In today's world of e-readers and phone apps, you can also log expenses on the go. Tracking expenses is key to your budget success.
10 reasons why some people love what they do. These are the people who get up thinking about what's going to happen at work that day, minus the impending sense of dread many of us have as we're brushing our teeth.
Americans believe that having a secure job is by far the most important requirement for being in the middle class, easily trumping homeownership and a college education.
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This communication is strictly intended for individuals residing in the States of: AL, AR, AZ, CA, CO, CT, FL, GA, IA, IL, IN, KY, LA, MA, ME, MI, MT, NC, NY, OH, PA, SC, TX, VA WI, WV. No offers may be made or accepted from any resident outside these States due to various state requirements and registration requirements regarding investment products and services. Securities and Advisory Services Offered Through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Fixed-insurance products and services offered by Chornyak & Associates, LTD are separate and unrelated to Commonwealth. This informational e-mail is an advertisement. To opt out of receiving future messages, follow the "Unsubscribe" instructions below. Disclosures: Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. All indices are unmanaged and are not available for direct investment by the public. Past performance is not indicative of future results. The S&P 500 is based on the average performance of the 500 industrial stocks monitored by Standard & Poor's. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The Dow Jones Industrial Average is computed by summing the prices of the stocks of 30 large companies and then dividing that total by an adjusted value, one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. The Russell 2000� Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Barclays Capital Aggregate Bond Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities with maturities of at least one year. The U.S. Treasury Index is based on the auctions of U.S. Treasury bills, or on the U.S. Treasury's daily yield curve. The Barclays Capital Mortgage-Backed Securities (MBS) Index is an unmanaged market value-weighted index of 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (FHLMC), and balloon mortgages with fixed-rate coupons. The Barclays Capital Municipal Bond Index includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than 2 years) selected from issues larger than $50 million. The Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index measures the performance of intermediate (1- to 10-year) U.S. TIPS. |
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September 2012
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I hope you enjoy my video this month on fixed-income investments. Back in the old days, people would say, "Well, as we approach retirement, we have more in bonds and CD's because that provides us with a steady flow of income." Well today, with interest rates as low as they are, you can't survive on income that's in the 1.5 to 2% range. I believe that you have to look at alternatives.
Commonwealth Financial Network provides some important thoughts on preparing for the potential loss of a spouse or partner - what entities to notify first, documents to collect, dealing with credit card, bank, and loan companies, and more. It's a difficult situation that we all should prepare for in advance in order to minimize stress.
Joe, Jr. continued his support of the Pelotonia bike race to end cancer this year. In 2011, a record $13.1 million was raised. Because operational expenses are covered by Pelotonia funding partners, 100% of every dollar raised is donated directly to life-saving cancer research at The Ohio State University Comprehensive Cancer Center-James Cancer Hospital and Solove Research Institute. You still have until October 12 to contribute to this great cause by clicking here. Choosing the right bank is a task that is critical to all of us in ensuring the health of our finances. Once you have made your selection, there are a number of things you can do to reduce your fees, increase your savings, and get all you can from your banking relationship. One of my favorite resources on personal finances, depositaccounts.com, presents you with a list of 40 ways to get the most out of your bank. Please have a read - you may find a hint that will save you lots of money. Finally, our "What's Happening Now" section has some interesting updates on diverse topics such as the entry of people over 65 into the workforce, 0% interest rate credit cards, and why some people love their jobs - don't miss this. I'd be glad to speak to you personally about your financial investment needs and concerns. Please contact me at 614-888-2121 (or toll- free 877-389-2121), or send an e-mail to:
Sincerely, Joe
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Market Update
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