Weekly Savings Tip: Save Early. Save Often.

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Retirement: the distant fantasy of no work and all play that comes after career. But how much do you know about planning for retirement? Maybe the thought of saving for this milestone 30 or more years down the road has yet to cross your mind. "Save early. Save often." is a good practice to follow when thinking about saving for your retirement. Here's why:

With the widespread use of compounded interest in retirement plans, it's never too early to start saving; compounded interest allows you to get the most out of your contributions, no matter the amount. With simple interest, you only earn interest on your investment, not on the interest that you earn. With compound interest, your annual interest is determined by the total of your investment plus any interest already accrued.

For example, let's take a look at Bill and Benjamin. Bill decides on a plan with simple interest and begins saving for retirement at age 40, putting in an initial investment of $10,000 and contributing $400 per month with a 6% annual rate of return. Benjamin, on the other hand, goes for compound interest and begins saving at age 25, starting with no initial balance and contributing $200 per month with the same 6% annual rate of return. Both men retire at age 65, Bill with $322,069 and Benjamin with $400,290.

Who would you rather be in your sixties: Bill or Benjamin?

Talk with your plan provider about your different investment options for your retirement plan; they can help make sure you're getting the biggest bang for your buck. And check out this chart for a helpful guide to saving for retirement.

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Mobile Banking—Is it for You?

Mobile banking on your cell phone or other mobile device can help you manage your finances by providing easy access anywhere for you to monitor your checking and savings accounts and credit card activity; check bill or loan due dates; pay one-time or recurring bills and receive low balance or transaction alerts via text messaging.

If you have considered mobile banking you have probably wondered if it's safe. In general, mobile banking offers at least the same level of security and encryption as online banking. Account data is typically not stored on your mobile device. To safeguard your personal and account information be sure to do the following:

Download mobile applications from reputable sources only.

Use strong passwords.

Read your financial institution's mobile banking agreement and disclosures.

Avoid using free wireless service available at public locations when conducting financial transactions.

Finally, be sure you are aware of costs.

While most financial institutions offer free mobile banking services, normal transaction fees will apply. Your wireless service provider may also charge you for text messages or downloads, so know the terms of your data plan agreement.

Weekly Savings Tip: April 12, 2010

April 15th is Fast Approaching!

Your 2009 federal and state tax returns should be submitted by this Thursday— April 15th. Whether you owe no money to the IRS, expect a refund or even if you can't pay your tax bill in full—you must still file a tax return by April 15th. If you don't, you could face a penalty for filing late. Additionally, if you owe taxes, you will be assessed penalties for underpayment.

What if you cannot afford to pay your taxes? If your return is complete but you are unable to pay the full amount due, do not request an extension. File your return on time and pay as much as you can. The IRS will send you a bill or notice for the balance due. You can also apply for an installment payment plan or file Form 9465 with your return.

What if you cannot complete your return in time? If you cannot file your income tax return by April 15th, both the IRS and states allow you to extend your filing deadline by six months. However, this is an extension to file your return, not an extension to pay the taxes that you owe. You are still required to estimate and pay the tax that you will owe, otherwise you could be assessed penalties and monthly interested.

For more information on filing an extension on your tax return, visit the IRS website.

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Weekly Savings Tip: March 29, 2010

Keep Some Investments Liquid

Are you planning a major purchase this year? If so, make sure to keep some of your investments liquid. The liquidity of an asset refers to how quickly it can be converted to cash without penalty. So, if you are planning a significant expenditure, is important to have liquid assets to avoid pulling from a long-term investment or a retirement fund at an inopportune time.Most long-term accounts will penalize you for withdrawing your money too early. Some will take away the interest that you have earned; others will actually dip into the principal that you have invested. Utilize a high-yield savings account, a short-term CD or a money market account to have funds accessible when you need them.

Click here for the Six Keys to Successful Investing.

Weekly Savings Tip: February 8, 2010

Creative Ideas to Save on Your Wedding

Your wedding may be a year or more away but you're probably already aware that the big day can be expensive. Use the months leading up to the big day to budget and plan. Here are some tips to help ensure that money is the last thing on your mind
when you say "I do."

• Date: If you avoid planning your wedding on a Saturday, or during the months of June and August, vendors may be more accessible, and less expensive. Also keep in mind that brunch and lunch are less expensive than dinner.

• Spirits: Alcoholic beverages dramatically increase the cost of any event. One money saving idea would be to hold the wedding earlier in the day. Another option would be to only offer wine and champagne.

• Location: Consider free locations to host your wedding, such as your home, a friend's home or a park. Additionally, your church or synagogue will likely be less expensive than commercial venues. Having the freedom to choose your own caterer or bring your own beverages can also be a great cost saver.

• Decorations: When it comes to the flowers and decorations, keep it simple! Try your local farmer's market, where you can choose from a wide variety of flowers that are grown locally and in season. Also consider working with local florists' programs at technical colleges or high schools to make your wedding a final project for a student.

• Invitations: Discount warehouses or online stationery stores may be an inexpensive option, since you generally get the same quality in exchange for a smaller selection. Or try getting a simple printed card and adding your own creative details.

Remember that the wedding only marks the beginning of a partnership that extends to your finances! Read more financial tips on Couples & Marriage.

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Weekly Savings Tip: January 04, 2010

COBRA Premium Subsidy Program Extended


On December 19, 2009, President Obama signed into law the Department of Defense Appropriations Act, 2010, which extends the 65 percent COBRA premium subsidy to February 28, 2010.

The American Recovery and Reinvestment Act of 2009 provided a government subsidy of 65 percent of the cost of COBRA coverage for employees (and their eligible family members) who lost their health insurance coverage due to involuntary termination of employment in 2009. In addition to the subsidy being extended to 15 months, employees who lose their jobs in January or February of 2010 will still be eligible.

For more information on the American Recovery and Reinvestment Act of 2009, visit the U.S. Department of Labor Web site.

Visit the Life Crisis section on the 360 Financial Literacy Web site for additional information on receiving unemployment benefits.

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Weekly Savings Tip: December 28, 2009

Post-Holiday Savings

Consumers should see a healthy selection of goods during post-holiday sales. Knowing where to look and how to make the most of these sales is crucial for avoiding long lines and getting the most bang for your buck.

• Shortly after the holidays, retailers will fill the newspapers, touting their sales. Take advantage of these sales by looking over the circulars in your area. Keep your eyes open for good deals on everyday items and even gifts for next year.

• If you are buying discounted sale merchandise, be sure you are fully aware of the return policy. Being able to return items for a full cash refund is a benefit that should not be overlooked.

• Being familiar with the warranty on the items that you purchase can save you time, money, and frustration, especially when it comes to appliances, computers, or other electronics. If you're unfamiliar with the store, read reviews to see if you can gauge customer satisfaction.

• Lastly, if you're not willing to brave the post-holiday shopping traffic or crowds, consider waiting until after the New Year when sales and money-saving opportunities will be just as plentiful.

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Weekly Savings Tip: December 21, 2009

What Investors Need to Understand to Avoid Fraud

As most investors know, risk is an inherent part of investing; it is what makes the reward of positive returns possible. Too often, investors focused on big returns are persuaded to enter into what turn out to be fraudulent schemes promising the moon and the stars for little or no risk. Here are some resources to help educate you:

Tricks of the Trade: Outsmarting Investment Fraud – FINRA Investor Education.

Investment Fraud Awareness Quiz – North American Securities
Administrators Association.

Consumer Fraud/Investor Protection Resources – Employee Benefit Research Institute/Choose to Save.

Click here to see a list of all 12 resources for understanding and avoiding fraud, by the nonprofit Alliance for Investor Education (AIE).

For more information on investing and fraud prevention, visit the Investment Planning section

of the 360 Financial Literacy website.

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Weekly Savings Tip: December 07, 2009

Winter Savings Tips

This winter, keep your family cozy and your wallet insulated by following
these easy steps:

• Dial back your thermostat 1 degree cooler during the winter season to help slash your energy bill.

• Caulk around window frames, door frames and seams on the outside of the house to keep heat in and cold air out.

• Take advantage of your body's natural heat. Wear sweaters, warm socks and long pants around the house.

• Use a programmable thermostat to automatically control your home's temperature. It can keep your house cooler during the day and warmer during the evenings. This could save you an average of $180 a year.

Following these tips can immediately reduce your energy costs. Learn more Winter Savings Tips.

Weekly Savings Tip: July 6, 2009

New Clunker Bill Can Help You Save

Recently, the House passed the “clunker bill” which allows you to trade in your older, gas guzzling car, for a $4,500 discount on a new and more fuel efficient car. The bill was created as a way to both stimulate the automotive industry and help the environment. With the discount from the bill and the markdowns that certain car dealerships are offering, there are some great deals to be had. Here are some things to remember if you are considering taking part in this year-long deal.

• Research typical maintenance costs for the make and model of the car you are planning to buy. Sometimes maintenance on a particular vehicle is more expensive than average resulting in unanticipated costs.

• Consider a possible increase in car insurance rates when weighing the best deal. Call your insurance agency to find out how to reduce the insurance costs on a new car. These deductions are based on both the model of your car and its features such as passive restraints, alarms, or even anti-lock braking systems.

• Remember that not all cars qualify. Your current car must get less than 18 mpg highway and the new car must get at least 22. You can check out
your car’s mpg here http://www.fueleconomy.gov/.

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