The tour is being sponsored by the NAPFA Consumer Education Foundation, TD AMERITRADE, and Kiplinger’s Personal Finance magazine. The bus will tour the country during the next year, beginning on October 1, 2009 and will be visiting major city centers to promote the message of saving and financial literacy. At the various stops Fee-Only, fiduciary financial advisors will be on hand to deliver free financial guidance - no strings attached!
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.
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:
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.
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.
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.
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.
We wanted to let everyone know that you can come on down to the bus later this morning not JUST for free financial advice, but also to view a press conference we are going to conduct with U.S. Senator Ben Cardin and Maryland State Treasurer Nancy Kopp. Senator Cardin will discuss the Senate's recent vote on the Bailout/Rescue Plan and what the recent economic turmoil means for every American.
The press conference will be held at 11:30 am in front of the bus at the intersection of E. Pratt and Light Streets.
Hey everyone! Come on down to the Inner Harbor in Baltimore. We are all set-up and now talking with people throughout the city about there financial concerns and needs. We will be here until 5 pm today then heading to Coppin State University for an educational symposium at 6:30 pm. Hopefully we will see you there!
Saving for college was a BIG topic for those wondering how to pay the bills for college tuition. One woman wondered what to do because her earnings had been earmarked for tuition, there wasn’t enough financial aid, and her daughter was just a freshman in college! Besides the discussion of part time and summer earnings, we talked about the possibility of family members lending money under the auspices of a third party to make it “serious” and “official.” She loved the idea!
As did the gentleman whose daughter was entering graduate school.
It’s a good idea to have in mind various referral sources and websites so folks have a take away.
Yesterday in Washington on the NAPFA Your Money Bus Tour we had a few questions from consumers who are in need of debt counseling. A large number of consumers seeking counseling are unwilling or unable to pay for advice so advisors frequently refer to Consumer Credit Counseling. However it's important to point out that when looking for help, consumers should be sure to seek out an organization that is not-for-profit. This will ensure that the organization is working in the interest of the consumer. Also check the National Foundation on Consumer Credit Counseling and your state's regulatory office to determine if the organization is legitimate. Also, consumers should be aware of any organization that charges high fees and/or promises to "get you out of debt" in 6 months or guarantees perfect credit.
A woman from the World Bank asked a great question on investments and tax planning. Since she is exempt from US income taxes, she wanted to know if she should invest in an annuity. A broker had recently suggested that she put her investments in an annuity to get tax deferred growth. I told her that she could invest in the same type of mutual funds as the annuity sub accounts and save the cost of the broker commissions which can range from 4 to 11 percent.
She also had questions on accumulating enough money for retirement and had additional questions on using money in a savings account to pay off the mortgage of her condo.Since she was paying 6.5 percent for her mortgage and was earning 2 percent on her savings, I did suggest that she keep 6 months of savings in an emergency fund and use the additional $30,000 to pay down her mortgage.Her current cash flow will allow her to pay off the mortgage balance in about 2 years which will give her peace of mind.
As she asked additional questions which were beyond the scope of the limited time we could spend with her, I suggested that she find a fee-only fiduciary financial advisor to answer her additional questions on an hourly basis or project fee.Alternatively, she could continue to do her financial homework as she was plotting her financial future.
NAPFA-Registered Financial Advisor and member of the NAPFA Consumer Education Foundation board of trustees, Annette Simon, was interviewed on Fox 5 news in Washington, DC for the morning broadcast on September 30th. Here she is being interviewed about the tour and what we hope to accomplish in Washington, DC during our stop on October 1-2.
If you are in DC, come on out for free advice, symposiums and more! Click HERE to see the schedule of events in DC!
The bus kicked-off in Jersey City on September 29th and was warmly received by the entire staff of TDAMERITRADE Institutional. During the kick-off, Tom Bradley, president of TDAMERITRADE Institutional, and Tom Orecchio, immediate past chairman of NAPFA, discussed the mission of the tour with staff then brought the staff out to see the bus.
After the presentation NAPFA-Registered Financial Advisors got together to offer free financial advice to people outside of the Path Station in Jersey City.
