ACCI Advisor Newsletter

Reclaim the American Dream!

June 2014

In This Issue

You Got the Job...Now What?

Most Popular Money Phrases

Retirement Plan Insurance

Give Yourself Credit

10 Things to know about your Fiance's Finances

Living with Health Care Reform

Quick Links...

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Congratulations! You got the Job. Now What?

Americans are going back to work in higher numbers than in many years. You may have found yourself finally landing a job after many months on the sidelines. This is wonderful news for you and your family. But after a long time out of work you are likely still facing financial issues that your new found income can help fix. How do you begin to put your financial world back together again?

Here are some tips on regaining your financial footing:

Celebrate in moderation - Naturally you want to celebrate your success but its a good idea to take it easy, especially if you haven't received paycheck #1 yet. Experts suggest you celebrate with a "small pleasure," and avoid any expensive outings.

Make a new budget and spending plan - You've been getting by as best you could but now you have new income to manage. There is work to do here as you review outstanding debts, schedule bill payments, and plan for savings and debt repayment. This is a good time to review pay dates and consider asking some creditors for a change of due dates to better align with your new pay days.

Start a saving plan - This may sound crazy to someone who has just gone back to work since they may be deep in debt but it makes perfect sense from a financial planning perspective. There is no better time to start the saving habit because now you have money to save. As soon as you qualify to invest in your employer's 401k consider investing at least enough to qualify for the employer's matching funds.

See a Doctor - If you've been without health insurance and/or haven't been to the doctor or dentist in a while since you didn't have the money to go, take this opportunity to get a check up and make sure you are in good health. Stress can affect the body in a number of negative ways and financial stress is one of the worst kinds. Good health is important so make sure you made it through this tough time without any residual health effects.

Keep looking - Most people stop looking for work once they get a job. In fact, in today's job market you have a better chance of getting hired if you are already employed. Take advantage of your new employment and stay in the job market. Chances are you haven't found your dream job and you may be underemployed or underpaid. Keep networking and stay in touch with recruiters and keep working on your career growth, whether at your current company or a future one, to reduce the chances of finding yourself unemployed again.

Breaking down the Most Popular Money Phrases

They're the money phrases we've all heard before, but are they working for us or could they actually be holding us back from acquiring a substantial amount of wealth?

Steve Siebold, author of the book How Rich People Think, and a self-made multi-millionaire who has interviewed more than 1,200 of the world's wealthiest people over the past 30 years, says be careful, some of these seemingly harmless phrases about money can actually interfere with the wealth-building process, but some can work in your favor.

For example:

-It takes money to make money: This phrase is limiting at best and destructive at worst. The truth is you have to have great ideas that solve problems to make money. If you do, you will attract money like a magnet. Wealthy investors are always on the lookout for the next big investment they can sink their teeth into.

-Money doesn't grow on trees: Figuratively speaking, money does grow on trees; and the trees are ideas. This belief sets people up to believe money is scarce and difficult to earn, instead of seeing money as abundant and earning it is as easy as solving a problem through persistent, creative thought.

-Another day another dollar: The masses trade time for money. This creates the belief that making money is a linear process directly connected to time. The average person believes the only way to make more money is to work more hours. Big money requires thinking about it in non-linear terms.

-Money is the root of all evil: The real saying is actually "the love" of money is the root of all evil, but has been misquoted for centuries that most people believe money itself is the root of all evil. Decide to be proud of your ambition and ignore people who tell you that wanting to be rich is wrong.

-A penny saved is a penny earned: This is a very dangerous belief as it put a major emphasis on saving. Saving in itself is not bad, but the masses are so focused on clipping coupons and living frugally, that they miss major opportunities. People must reject this nickel and dime thinking and focus their mental energy where it belongs: on the big money.

-Money can't buy you happiness: The most common misconception about money is that more will make you happier. You don't get rich to get happier; you get rich for the freedom in brings. It allows you to live life on your own terms, but it's unlikely to make you any happier. If you're unhappy without money, you're not going to be happy with it.

-A penny for your thoughts: This is usually a harmless phrase when people just want to know what's on your mind, but be careful: If overused and it penetrates the subconscious, you'll start giving away your intellectual property for practically nothing. Your IP and unique perspective can potentially be worth millions if packaged properly.

-Selfishness is a virtue: The masses are programmed from an early age to put the needs of others before their own. While this sounds like a spirit-driven, high-level philosophy, it's the worst advice you can get when it comes to money. In order to make a lot of money, there is a period of time in the beginning of the wealth building process where you must focus on yourself and your business in order to make it at an uncommon level. Once you acquire wealth, then you can volunteer or give back to charity.

When it comes to money, Siebold says the best advice to remember is to always look at it from a consciousness of freedom, possibility, opportunity and abundance. Never look at money from a fear and scarcity point of view.

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Want to pay off your debt more quickly?

If you have the desire and the ability to make extra payments towards your DMP, contact ACCI Customer Service to coordinate making the extra payment. Since your DMP is set up to pay a certain amount each month changes must be handled properly to make sure you do not get removed from the Creditors DMP.

ACCI Customer Service 1-800-708-1335.

Do You Have Insurance on Your Retirement Plan?

Financial Planner Shares Tips for Protecting Your Savings

You have insurance on your home, your car, your health.
How about your retirement plan?

"People have homeowners insurance to protect against fires and floods," notes independent financial planner Stephen Ng, founder and president of Stephen Ng Financial Group, (www.stephenngfg.com).

"They buy insurance to replace their car if it gets wrecked and they buy health insurance to protect themselves from medical costs.

"But for many people, their biggest material asset is their retirement portfolio. When I look at a new client's portfolio and ask, 'Where's your insurance?' they look at me like I'm crazy!"

Insure your retirement fund by taking steps to safeguard at least a portion of it, Ng says. As you get closer to retiring, the amount you safeguard will be what you need to rely on for your retirement income.

"Your retirement income should be derived from guaranteed sources, such as Social Security benefits and your pension plan," says Ng, a licensed fiduciary advisor, certified to advise companies about their 401(k) and other retirement plans. "It's the amount you need to pay the bills and do the other things you hope to do in retirement, so your retirement income needs to be a guaranteed source of income.

"Then you look for your 'play checks.' That's the money you don't absolutely have to have, so you can still try to grow it, and take risks with it, in the market."

Ng offers these tips for insuring your retirement plan:

- Invest a portion of your portfolio in annuities.
Annuities are long-term investment options through insurance companies that guarantee you payments over a certain rate of time, which could be the rest of your life or the life of your spouse or other survivor. Note: The guarantee is subject to the financial strength and claims-paying ability of the issuing insurance company.

-If you leave your job, quickly roll your employer-sponsored 401(k) into an IRA. While 401(k)s are a great tool for saving, particularly if your employer is providing matching funds, if you were to die, the taxes your survivors would pay on your 401(k) would be much higher than on an IRA. That's because they would have to inherit the money in a lump sum; that could easily take 35 percent right off the top. The lump-sum rule does not apply to IRAs. While your spouse would have the option to inherit your 401(k) as an IRA, your children would not. So, take advantage of your employer-sponsored 401(k), but if you leave the company, convert to an IRA or ROTH IRA. You can also begin transferring your 401(k) funds to an IRA at age 59�.

-Consider converting your IRA to a ROTH IRA.
For protection from future income tax rate increases, you should consider slowly converting your tax-deferred IRA funds into a ROTH IRA. Yes, you'll have to pay the taxes now on the money you transfer, but that will guarantee that withdrawals in your retirement are not taxed - even as the money grows. If you plan to leave at least part of your IRA to your children, they'll benefit from a fund that continues to grow tax-free.

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Do you have a friend or relative considering bankruptcy? Remind them that it's a short-term solution with long-term consequences. Have them call ACCI for some debt relief advice from a certified counselor.

1-877-969-3328.

Tips to Clean Up Credit Scores

Personal Finance Expert Shares Practical Insights

Most people know they want "good credit," but don't really understand why their current credit is bad, how to improve credit or how to create a credit score. When credit scores are low or non-existent, it can be a difficult and scary process to boost credit scores. Patrice C. Washington, Money Maven of the Steve Harvey Morning Show, shares her insights on the ins and outs of credit scores and provides tips to help improve them.

"Your credit score consists of information compiled from five categories: payment history, the duration of your credit history, new credit, the mix of credit and the current amount of total debt," says Mrs. Washington. "Since your score revolves around several factors, it can be easy for people to lose track of their credit. Luckily, with the right mindset and smart tips, there are ways to clean up your credit without going crazy!"

Below are Washington's tips for boosting credit:

1. Make Up Your Mind: In order to clean up credit and avoid falling into the same trap again, you must make up your mind now that you want to live a different life and moreover that you deserve to live a life of abundance, not one in bondage to material possessions. Remember, every change starts with a decision. Decide today that if the normal America lives paycheck to paycheck, you're 100 percent comfortable with being abnormal.

2. Stop relying so much on Credit Cards: Don't continue to add debt to the cycle. Using cash forces individuals to think harder about whether the purchase is really a necessity. Cut up those department store credit cards and put a major credit card in a safe place for an emergency opportunity. Don't call the credit card companies and close the accounts. Doing so will erase the history as soon as the creditor sends the next update to the credit bureaus, usually within 30 days, which will result in a drop in credit score.

3. Write Down All of Your Debt: List each debt you're responsible for, along with its current balance owed, interest rate and minimum monthly payment. This will provide a visual and help keep you responsible for each card or account.

4. Know Your Due Date: Late payment fees can cost an average of $40 per month. This is a complete waste of money and paying on time or early will free that $40 for a savings account instead.

5. Negotiate Lower Interest Rates: Call creditors and convince them to lower the interest rate by at least 25 percent. If most payments have been made on time and there is not any negative history - such as returned checks - many credit card companies are willing to negotiate rates. They'd rather do that than take a chance that the cardholder defaults and not pays them at all.

6. Balance Transfer when Appropriate: Transfer high interest credit cards to other cards which may be offering 0 percent interest for a specified period of time. Make note of when that time will be up, in case you need to shift the balance elsewhere, but be careful to not make this strategy a way of life. The point is to help you get out of debt by utilizing the least amount of money you possibly can.

7. Pay More than the Minimum: Banks are businesses, not charities and their goal is to make as much money off of customers as possible. Credit card minimum payments are calculated to make it easy for people to carry the debt for as long as possible. When paying more than the minimum, it cuts down on the interest and pays the principal down more quickly.

Known as the Wisdom & Wealth Money Maven, Patrice C. Washington is the Founder and CEO of Seek Wisdom Find Wealth, a personal finance training and development firm based in Atlanta, GA.

Give Yourself Credit!

Get your three credit reports for free each year by visiting www.annualcreditreport.com. Or call toll free 1-877-322-8228.

10 Things to know about your Fianc�'s Finances

RPG- Life Transition Specialists Explain What to Discuss Before Tying the Knot

You've fallen in love, set the date and picked out the dress, but have you talked about your finances? Before taking the vow of "for richer or poorer," it is important to discuss your current financial situations and determine how finances will be handled during marriage.

Joshua Kadish, AIF, RFC of RPG- Life Transition Specialists explains that while certain financial factors may seem personal in nature, it is best to share that information so couples are on the same page. "Few people speak about the link between finance and relationships, yet money often acts as a major contributing factor to divorce," says Kadish. "Understanding how to navigate through financial challenges and preparing for the future will allow you to build a strong financial foundation for your relationship."

Below is a list of ten topics couples should discuss regarding their financial picture before saying I do.

Credit Score: A recent survey released by credit-rating agency Experian found that credit score was the number one issue couples failed to discuss before the wedding. Poor credit may indicate that one person has money management issues. To improve bad credit, discuss financial mistakes and work together towards changing bad money habits, such as making on-time payments. Failure to improve a poor credit score can delay attaining financial goals such as qualifying for a mortgage loan.

Yearly Income: If the relationship is serious enough to discuss marriage, then salary is a topic that is no longer off-limits. Annual incomes should be discussed as it will determine what luxuries the couple can (or can't) afford, where they will live and how bills are paid. Don't forget to take into consideration a partner who makes significantly more or has a commission-based income.

Savings: It is important to have a general idea as to how much your significant other has saved to determine your financial stability. If your partner is living paycheck to paycheck, develop a plan that allocates money to an emergency fund. Ideally, you should have six months salary in the bank for an adequate financial cushion.

Debts: If one person is bringing substantial debt to the marriage, it is imperative they do not attempt to hide it. Getting married could mean one spouse will share the responsibility of the debt. Be upfront and develop a plan for paying off the balance.

Bank Accounts: Determining whether bank accounts will be separate or joint before the wedding can prevent financial fights down the road. Typically many couples opt for a combination of both. A joint account may be used for family expenses such as the mortgage, utilities and groceries while an individual account can be used for personal spending.

Health Insurance Coverage: Once married, important decisions regarding insurance and estate planning need to be made as well. Are you both covered under separate plans through your respective employers? You may want to look at which health insurance policy is the most beneficial and take advantage of the special enrollment period and join your spouse's plan.

Budgeting: Creating a family budget is an important task since your new spouse will contribute to various expenses. Evaluate your combined cash flow and determine how bills will be paid, money will be saved and finances will be allocated. Reaching a mutual agreement on spending will prevent financial problems from occurring down the road.

Work Benefits: Consider how marriage may affect your employment benefits and insurance policies. Check to see if your employer's plan allows a spouse to be added as some plans don't allow double coverage. Also review your employer's pension plans. For example many employers provide 401k plans only for their employees, therefore, your soon to be spouse will need to be added as a beneficiary.

Retirement Accounts: If your partner has not started saving for retirement, take advantage of accounts that will help your financial situation. IRA's, pensions and other retirement plans should be evaluated along with other resources you may have. Be sure to establish the proper beneficiaries on these accounts so the assets will be dispersed appropriately in the event of an accident.

Financial Goals: Consider your short-term and long-term financial goals as a couple. Buying a home, retirement and even investing styles are all aspects in which you should share similar ideals. Map out a plan that can help you reach your shared financial goals.

Have a money saving tip that you'd like to share? Send it to us for possible publication in this newsletter at:

education@acchelp.org

Living with Healthcare Reform

Getting prescription medications

Health plans will help pay the cost of certain prescription medications. You may be able to buy other medications, but medications on your plan's "formulary" (approved list) usually will be less expensive for you.

Does my new insurance plan cover my prescription?

To find out which prescriptions are covered through your new Marketplace plan:

Visit your insurer's website to review a list of prescriptions your plan covers

See your Summary of Benefits and Coverage, which you can get directly from your insurance company, or by using a link that appears in the detailed description of your plan in your Marketplace account.

Call your insurer directly to find out what is covered. Have your plan information available. The number is available on your insurance card the insurer's website, or the detailed plan description in your Marketplace account.

Review any coverage materials that your plan mailed to you.

What do I do if I'm at the pharmacy to pick up my prescription, and they said my plan no longer covers it?

Some insurance companies may provide a one-time refill for your medication after you first enroll. Ask your insurance company if they offer a one-time refill until you can discuss next steps with your doctor.

If you can't get a one-time refill, you have the right to follow your insurance company's drug exceptions process, which allows you to get a prescribed drug that's not normally covered by your health plan. Because the details of every plan's exceptions process are different, you should contact your insurance company for more information.

Generally, to get your drug covered through the exceptions process, your doctor must confirm to your health plan (orally or in writing) that the drug is appropriate for your medical condition based on one or more of the following:

All other drugs covered by the plan haven't been or won't be as effective as the drug you're asking for.
Any alternative drug covered by your plan has caused or is likely to cause side effects that may be harmful.
If there's a limit on the number of doses you're allowed:That the allowed dosage hasn't worked for your condition, or the drug likely won't work for you based on your physical or mental makeup. For example, based on your body weight, you may need to take more doses than what's allowed by your plan.

Questions? Call HealthCare.gov at 1-800-318-2596, 24 hours a day, 7 days a week. (TTY: 1-855-889-4325).

American Credit Counselors
Educational Workshops

As a non-profit Credit Counseling and Financial Education organization, ACCI is dedicated to reaching out to the community. ACCI provides free financial education seminars and workshops at community centers, local organizations, and companies.

Ask about customized seminars for your group, staff, congregation, team, or club! Call 1-800-708-1335 or email education@acchelp.org.