Photos From The Philly Stop

Money Questions From The Philly Stop

NAPFA-Registered Financial Advisor Karen McIntyre has had some interesting questions from people stopping by the free advice event at Independence Park in Philadelphia. Here are a few she thought could be of help to other people:

I’ve spoken to a few people so far this sunny morning. On everyone’s mind is how the financial crisis affects them. One young man preparing for his wedding was worried about his long term financial security. His 401(k) dropped 25%. What options exist? Work longer, save more? I suggested he use this as a learning opportunity and determine if his investment strategy needs to be adjusted given these unusual times. Of course I suggested he consult with a financial advisor. Since his 401(k) was at Vanguard, I referred him to their website to determine where he was on his road to financial freedom and for guidance on constructing an investment allocation geared to meet his needs.

Loren, a psychologist, stopped by to tell me how much he appreciated us being here. He said times were so much easier when he was young – no school loans, housing more affordable – and wonders how young people can do it. He’s not surprised that credit card debt is out of hand. He says young people can’t make ends meet due to school loans. I’m left wondering what the world will be like when my three year old graduates from college. Good thing we’re saving for his future!

The NYC Stop Has Been Updated!

If you are one of the 11 million New Yorkers planning on heading out to the Your Money Bus stop in New York City on October 14-15, you need to review the updated schedule for that stop. We will no longer be at Union Square on the morning of the 14th, but will rather be making quick awareness stops around the city before heading to Harlem. On the 15th we will be on the Today Show and are planning a press conference with Congresswoman Carolyn Maloney, sponsor of the Credit Cardholders' Bill of Rights.

Tune in for more details!

We're In Philly!

Well, the Your Money Bus has pulled into Philadelphia for our stop. We are on Arch Street (between 5th and 6th Streets) right in front of the National Constitution Center. We will be talking with people all day about financial issues that matter most to them. If you are in the area and have financial questions, stop by! We'll be here until 4:00 pm.

Senator Ben Cardin Joins The Your Money Bus Tour

Members of the media gather for a press conference this morning with Senator Ben Cardin, State Treasurer Nancy Kopp, Knight Kiplinger and Michael Joyce of the NAPFA Consumer Education Foundation. Each representative shared their views on the financial and economic concerns of people in Maryland.

Senator Cardin shared his view of the current crisis happening right here in the U.S. and what it means as the government votes to stabilize our credit markets.

If you live in the Baltimore area be sure to keep an eye out for the bus and our special guests.

A View On Savings

We just finished a fantastic press conference with Senator Ben Cardin, Maryland State Treasurer Nancy Kopp, and Knight Kiplinger. All three participants hit upon the most critical financial issue facing America today: lack of savings. Senator Cardin put the problem in perspective. He discussed how just 10 years ago America was booming. The stock market was yielding double digit returns consistently, home values were rising, and unemployment was at a historical low. These factors caused Americans to drop their savings rate. Why save when the markets were making us wealthy without saving?

Well, we are now finding that savings is the key facet to financial independence. Many families have no safety net because we, as a nation, failed to save. We MUST change our savings habit. We MUST realize that the markets cycle between good and bad. Having a savings “safety net” is the ONLY way to get through the difficult cycles.

I realize it is difficult to find money to save with children, rising gas prices, high taxes, and stagnant wages, but saving can often be much easier than you think. There are some simple measures that can make a big difference over time:

1. Review your auto, home, life, and other insurances. You may find that you can find the policies at a lower cost at another company. I find most people have a low deductible, say $250. You may be able to raise your deductible to $500 or $1,000 and save money. Term life insurance is continually getting cheaper due to rising life expectancies. You may save money by getting a new policy.
2. Buy generic. Often, the very producers of the marquee products make products for generic products. You are basically paying extra for the brand name. You could cut 10% from your grocery bill by using generics.
3. Start loving coupons. Sure, they are a pain to use and store, but you could probably find $25 to $50 per month by using coupons. Look at those coupon books that schoolchildren sell as fundraisers. I use them and find many coupons for restaurants I often frequent. I save about $300 per year with them.
4. Weatherproof your home. Caulk all open passages, let the sun into the home, and add more insulation. These measures can cut your heating bill by 20% or more.

There are other options to save, but the key is to save, save, save.

Kirk Kinder, CFP

NAPFA-Registered Financial Advisor