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4 Ways to Use Your Tax Refund Wisely [INFOGRAPHIC]

Brendan — Fri, 12 Apr 2013 17:00:32 +0000

Tax time may not actually be 'fun,' but once the process of filling out all those forms is completed, dotting the Is and crossing the Ts, many of us have a refund coming our way. With the average tax refund near $3,000, it's important to put that money to use in the best way possible. For some that means paying down credit cards, for others it means putting it toward retirement. In any case, many options should be considered and evaluated. Here's a brief look at 4 wise ways to use that money. [infographic]

Financial Tips for the Newly Single and Over 50

Brendan — Tue, 26 Feb 2013 12:00:26 +0000

Divorce can throw a wrench into even the most careful financial planning. If you’re newly divorced, you’ve probably had to deal with dividing assets, such as investments and retirement accounts, and setting up separate households, not to mention the emotional fallout of ending a marriage. Here’s a look at several steps you can take to get your finances back on track after a divorce. Consider Life Insurance Life insurance is especially important if you have dependent children who may be relying on you to cover their daily expenses or educational costs. Life insurance could also prevent you from becoming a financial burden on other family members, because your beneficiaries could use the proceeds to cover your final expenses, such as burial or funeral costs. That money could also be used to settle any debts you might leave behind. Investigate Health Insurance If you were covered under your ex-spouse’s employer health insurance policy, you may need to secure new coverage once the divorce is finalized. If your ex-spouse’s company has 20 or more employees, you may be eligible to continue coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA), provided you notify the health plan administrator within 60 days of becoming divorced. However, under COBRA, you will be responsible for the entire amount of the premium, which is the monthly payment, so it may be more economical to secure coverage on the individual market or through your own employer. You may also want to beef up your health insurance coverage by adding supplemental health insurance. In the event of a serious injury, supplemental health insurance would help fill coverage gaps like co-payments, deductibles, and nonmedical care, such as transportation to treatment. Explore IRA and Social Security Options If you were married for at least 10 years and have not remarried, you can claim Social Security benefits on your ex-spouse’s record starting at age 62, regardless of whether your ex-spouse has remarried or not. But Social Security checks may not cover all your expenses during retirement, so it’s often a good idea to use other retirement savings vehicles, such as Individual Retirement Accounts (or IRAs). IRAs are a tax-advantaged way to save for retirement that allow you to choose the investments in your account and supplement employer-sponsored retirement accounts, including a 401(k) or 403(b). The maximum IRA contribution for 2013 is $5,500, but if you’re over age 50, you can also make catch-up contributions to a traditional or Roth IRA up to $1,000. By taking these steps now, you’ll help ensure greater financial independence and security during and after this difficult transition. Want to know more about insurance and IRAs? Contact an Allstate personal financial representative to discuss your needs.

6 Halloween Safety Rules for Homemade Halloween Costumes

Pamela — Mon, 08 Oct 2012 11:00:04 +0000

Goblins, ghouls, and ghosts… oh my! Both store-bought and homemade Halloween costumes can be wickedly fun – and also unsafe. Long costumes, a lack of fire-retardant material, masks that obscure vision and sharp accessories pose a safety hazard for young trick-or-treaters on the go. This Halloween, whether you buy your children’s costumes at the store or make them at home, be sure to put safety first. Follow these six Halloween safety rules when outfitting your trick-or-treaters.

1) Shorter is safer.

Falls are a leading cause for Halloween injuries. In the excitement of ringing doorbells and collecting candy, it’s all too easy to trip on a long costume or slip on a rocky path. Be sure that long costumes and capes stop several inches from the ground when your child is standing. When in doubt, hem up costumes by an extra inch or two.

2) Use lighting.

A glow stick, a flashlight or reflective tape can help children be more visible to oncoming traffic. For extra visibility, add a strip of reflective tape to your children’s trick-or-treat bags and the backs of their shoes. If your children use a flashlight, put in fresh batteries at the beginning of the night.

3) Don’t feel the heat.

The bottom of a long costume can easily catch fire when swept over a Jack O' Lantern candle. According to the Consumer Product Safety Commission, since 1980 at least 16 trick-or-treaters have sustained burns while wearing their Halloween costumes. All costumes, capes, wigs, beards and accessories should be fire-resistant. Costumes with spray-on glitter have the greatest risk for flammability, since the glue that holds the glitter is not flame-retardant. For homemade Halloween costumes, opt for sewn-on sequins rather than sprayed-on glitter.

4) Leave the mask and high heels at home.

Masks limit eyesight, so opt for fun hats, wigs or non-toxic face paint to complete your child’s costume. To prevent potential skin or eye irritation, remove all face paint before children go to sleep. High heels can also be dangerous; your princess will look just as regal in some pretty ballet flats, and she'll be much safer walking between houses.

5) Skip the sharp accessories.

Does your pirate need a sword to complete his costume? Is your witch missing her magic wand? Make-believe accessories, like knives, swords and wands, should be constructed from soft plastic or foam with no sharp tips. Otherwise, a child could easily trip and hurt himself--or another trick-or-treater--with his own sword.

6) Walk, don’t run.

If you won’t be accompanying your kids while they trick-or-treat this year, remind them to walk, not run, between houses. Avoid neighborhood short cuts and stay on well-lit sidewalks. This is especially important for children wearing dark costumes, like witches or goblins. Even with reflective tape, it can be difficult for drivers to see kids darting between cars or crossing streets mid-block until it’s too late. What will your child be dressed up as this Halloween?

Living Longer: Men Are Closing the Gender Longevity Gap

Melissa — Fri, 05 Oct 2012 11:00:29 +0000

Men planning for retirement may want to take a second look at the size of their portfolios. According to a recent study released by the Institute of Health Metrics and Evaluation, they are living longer than ever before. Men are adding years to their lives at such a fast pace that the gender longevity gap is narrowing for the first time. According to data from IHME, from 1989 to 2009, the average life expectancy for men increased by 4.6 years. Female life expectancy only grew by 2.7 years over this same period. Today, men are expected to live to 76.2 years old, compared to 81.3 for women. Why is the average life expectancy inAmericagrowing faster for men than for women? Men are less likely than women to be obese and more likely to exercise and treat cardiovascular disease. Overall, men have also adopted healthier habits. For decades, more men than women smoked, and men were also more likely to follow unhealthy eating habits. Now, major cities likeNew York CityandSan Franciscoare leading a cultural attitude shift toward healthy lifestyle habits. IHME identified 10 major metropolitan areas that showed the biggest increase in male longevity. In New York City, men added 13.6 years to their lives, and inSan Francisco, men added 11.7. Many of the increases were also seen in the greaterNew York Cityregion, includingKings County, N.Y., with 11.5 years; the Bronx with 11.1 years; Queens with 8.9 years;EssexCounty, N.J., with 8.4 years; andHudson County,N.J., with 8.2 years. Other metropolitan areas seeing a major increase include Washington, D.C., with 10.9 years; Yuma County, Ariz., with 9.5 years; and Fulton County, Ga., with 9.3 years. What about the women? Over the same 20-year period, cardiovascular disease became the leading cause of death for women. According to Dr. Ali Mokdad, a professor of global health at IHME, men are more vigilant than women when it comes to treating cardiovascular concerns. Additionally, the American Heart Association reports that cardiovascular disease is often misunderstood, unrecognized and untreated in women. Consequently, women are still expected to outlive men, although by far less than they were expected to 20 years ago. Traditionally, women live longer than men. According to Tom Perls, founder of the New England Centenarian Study at BostonUniversity, 85 percent of all people over 100 years old are women. Experts estimate that up to 70 percent in the variation of life expectancy for men and women may be due to environmental factors. In his research, Perls cited three behaviors that men traditionally engage in more than women: smoking, eating foods high in cholesterol and internalizing stress. The study showed that when men eliminated these bad habits, their overall life expectancy increased. That’s good news for women. As the IHME study shows, behavioral changes for men made a big difference. According to Mokdad, women need to start exercising and be more proactive when it comes to their cardiovascular health. Ladies, it’s time to hit the treadmills!

Learn About Life Insurance [SLIDESHOW]

Melissa — Tue, 11 Sep 2012 15:00:23 +0000

It may be hard to think about what your family would do if something were to happen to you, but it's important and necessary to consider life insurance to take care of their needs. And, what better time than this month, which just happens to be Life Insurance Awareness Month? There are a lot of factors to take into account when you're looking into life insurance. Check out the following slideshow for lots of great information on where to start. [slideshow]

Financial Security Tips for Single Retirees

Brendan — Tue, 28 Aug 2012 11:00:08 +0000

Single retirees don’t have it easy. The cost of living for single retirees is 40 to 50 percent higher than that of retired married couples, according to a recent report by the BMO Retirement Institute. And almost half (43 percent) of Americans who are 65 or older fall into that single category, according to a 2011 Census Bureau report. Several reasons explain the high number of single retirees. According to The Vanier Institute of the Family, 44 percent of marriages in theUnited States will end in divorce before the couple’s 30th anniversary. There are also a lot of women simply outliving their husbands. Thirty-nine percent of women 65 and older are widowed. A number of people are also choosing not to marry. Unmarried young adults ages 25 to 34 outnumbered their married counterparts by approximately 2 percent. With a substantially higher cost of living, single retirees have to be more mindful of their finances. “It’s extremely more expensive living as a single person than as a couple,” says Tina Di Vito, head of the BMO Retirement Institute. Couples can share living expenses and use their joint savings to pay for retirement, whereas single retirees are on their own. To help alleviate extra costs, single retirees should set a spending budget and stick to it. “When single retirees are entering retirement, they can only rely on themselves for the financial perspective—one pension, one Social Security, one savings account—so that person needs to make sure they have a spending budget and know where their money is going,” says Di Vito.

Share and Share Alike

Another recommendation is that single seniors consider shared housing arrangements for the sake of cost-sharing and for additional support around the house with things like chores. According to a 2010 Census Bureau report, 557,000 seniors age 65 and older are involved in some kind of shared housing arrangement. You’ll be taking a lesson from The Golden Girls, a T.V. sitcom in which Bea Arthur’s character and three older women shared a home in Miami. The women had camaraderie, led full lives and helped each other during difficult times. Single women in particular need to plan more for retirement, as women generally have longer life spans than men. However, many women earn less during their working years and accumulate a smaller nest egg. Because of this, they will need to really consider how much they are putting away for retirement. Women may need to save for a longer period of time to accumulate more capital.

Do your retirement plans include a roommate or a strict budget?

Insurance Agent: How the World Sees Me

Brendan — Mon, 05 Mar 2012 15:02:55 +0000

Stable. Helpful. Reliable. While typically categorized as such, insurance agents may consider themselves helping those in need and protecting good people during stressful, uncertain times. Who are we to disagree? Sometimes the truth lies in the eye (or mind) of the beholder.

PUPs Help Protect Without Staining the Rug

Erick — Fri, 20 Jan 2012 15:06:25 +0000

Adorable and cuddly, puppies can be a handful—and even destructive. Instead of creating problems, like puppies, PUPs (Personal Umbrella Policies) help protect you from unexpected events like a fatal auto accident that results in a lawsuit. Typically, the PUP kicks in once your underlying policy has paid out its limits.

In today’s litigious society, lawsuits are becoming more common and can deplete your bank account and threaten to take everything you own, including your home. Many people have a "that-could-never-happen-to-me" attitude. However, finding yourself tangled up in a lawsuit is a realistic possibility. Say your teen son, excited about his new-found independence, drives his buddies to check out the latest movie. On the way there, they’re involved in a major accident, seriously injuring several people in both cars. You could be held financially liable, and the costs involved could far exceed your standard policy. No one wants to find themselves in these kinds of worst-case scenarios. That’s why you should know more about PUPs (the kind that don’t lick—or bite); an insurance option that could save you big money:

Q: Should I consider purchasing a PUP even though I already have liability insurance on my other policies

A: A PUP provides coverage above the limits of your auto, homeowners or other policies. If a car accident is your fault and the other driver's injuries are severe, he may require benefits beyond the $250,000 your policy covers, meaning you could be sued. And you can imagine what you might have to pay if the accident causes a surgeon or other highly-compensated professional to miss work for a year due to his or her injuries.

Q: How do I decide whether a PUP is a good choice for me?

A: Start by evaluating your assets. Consider how much you have to lose. Look beyond your savings, and think about things like your house, your valuables, your vehicles and your annual income. Realize that the more money you have, the greater likelihood someone will find a reason to take you to court. You also should consider other factors. Do you have young drivers on your auto policy? Are you a Little League coach? Do you own animals? A boat? A swimming pool? A motorcycle? All of these can increase your risks and the value of a PUP.

Q: What kind of coverage is available?

A: PUPs are typically available in increments of $1 million all the way up to $5 million.

Q: How much do I need and what will it cost?

A: According to an MSNBC report, many experts would advise you to carry at least $1 million worth of coverage, even if you don't have a net worth that high. PUPs are more affordable than you might think. Depending on where you live, the cost for a PUP can be less than a dollar per day.

Q: What else should I look for in a PUP?

A: Make sure your policy also covers you outside the United States. Some policies also will pay for your attorney costs and lost wages. In today’s lawsuit-prone society, you don’t have to be a millionaire to be sued like one. Talk to your insurance agent about bringing a PUP into your policy portfolio.

5 Reasons Young People Need Life Insurance

Brendan — Tue, 13 Dec 2011 16:06:07 +0000

Most young people think that they don’t need life insurance. After all, mortality is far away from twenty- and thirty-somethings. There are, however, certain cases when young people do need life insurance to guard against the unexpected. Life insurance doesn’t have to be expensive. Term life insurance provides coverage for a limited period of time (for example, 10 years, 20 years, or 30 years) and is one of the most cost-effective ways to purchase life insurance. Here are five situations when you should consider having life insurance.

1. You have parents who are depending on your income. We typically don’t think of young, single people as folks with dependents. But if you are the main source of support for your parents, siblings, or relatives, you need to get life insurance as much as the sole earner who is supporting a spouse and three kids. 2. You have a partner or spouse who is depending on your income, especially if you have a home. Many times a young couple purchases a home based on both of their incomes. A life insurance policy would provide mortgage protection. Even if the life insurance isn’t big enough to pay off the entire mortgage, the money will give the surviving partner time to figure out the best next step forward. Or, if you are supporting your partner through school, the life insurance proceeds will ensure that your partner can continue with his or her education. 3. You want to give your partner or spouse time to deal with their grief without worrying about finances. Think about how devastated your partner would be if you died. Money can’t bring you back, but it can provide a cushion for your partner. 4. You want to have money set aside for funerals, especially if you would like a burial. According to the National Funeral Directors Association, the average cost of a funeral was $6,650 in 2009. This cost does not include cemetery or headstones. If you want to be buried, a plot of land can cost up to tens of thousands of dollars. The cost of cremation is lower at $1,000, according to the National Cremation Research Council. 5. You are able to buy affordable term life insurance. Typically, a $25,000-$250,000 term life insurance is very affordable for young healthy folks. Many companies also offer free or discounted life insurance coverage. A life insurance policy will hopefully be something a young person never has to use (knock on wood!), but it does provide protection—and should provide comfort—to loved ones in case of an unexpected tragedy.

Well Heeled is a guest blogger from WellHeeledBlog. In exchange for sharing this content, the Allstate Community has compensated her via cash payment.

5 Lessons We’ve Learned from Today’s Economy

Brendan — Fri, 09 Dec 2011 16:06:07 +0000

The last five years has been a rollercoaster in the global economy. From the bursting of the housing bubble, to the fall of Lehman Brothers, to the escalating Greek debt crisis, many ordinary workers are dealing with the fallout from all of this uncertainty. Here are five lessons that today’s economic unpredictability has taught us about our personal finances.

Don't take on too much debt. Debt is a manageable expense during the good times and a burden during the bad times. If you are faced with an unsustainable situation, seek debt advice or debt counseling. Many times lenders are interested in working out a deal. A debt settlement or agreement will help them get some money back and help minimize the hit on your credit. Have liquidity. In times of economic uncertainty, cash is king. Having liquidity in cash or cash equivalent money market funds will allow you to make investments, maintain access to funds, and if you are anything like me, sleep more soundly at night. Cash is an important element in sound personal finances. The housing crash of 2007 has demonstrated that home equity – which can vanish overnight and may take years to recover - is no replacement for good ol’ cash. Keep saving. If you have been tightening your belt for the past several years, recession fatigue might be setting in. Splurge on small treats, but if at all possible, keep saving. A healthy emergency fund is crucial in an unstable economy, because it will be your first line of defense against unemployment or other unexpected expenses. Be appropriately insured. Among competing demands for the family dollar, insurance might seem like an afterthought. But it’s penny wise and pound foolish to get rid of insurance. Given that many medical emergencies and illnesses cause bankruptcies, it is essential to maintain some form of health insurance if you can. Also, don’t forget about life insurance or car insurance. To make sure you are getting the best value, adjust your deductibles to as high as you can afford, and make sure you are not over- or underinsured. Invest in your career. For most people, earnings from their career is their most important wealth-generating asset. When layoffs are rampant, it is crucial to continue to pursue career advancement through networking, skills training, and establishing and protecting your reputation within the industry. Even if you don’t have a lot of money to spend, there are easy-on-the-budget ways to career advancement. Go to a Toastmasters meeting to hone your public speaking skills. Check out free web tutorials on the latest Excel macros. Set aside $20 every month to take a colleague out to coffee. These tips are especially important in a world where the national unemployment nears 10 percent and financial markets gyrate wildly. But no matter what the world economy is like, these lessons will help you establish and maintain sound personal finances.

Well Heeled is a guest blogger from WellHeeledBlog. In exchange for sharing this content, the Allstate Community has compensated her via cash payment.