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Obamacare: Open Enrollment What You Need To Know

It may be open enrollment season for many of you at work, but for millions of Americans it will be the official open enrollment for Obamacare coming up this Saturday.  Amidst the unknown of the upcoming Supreme Court case regarding federal subsidies, there is a plethora of information to digest for those of you who are considering the federal marketplace for your health insurance.  Here are my five smart money moves Q & A to help you get an initial start to understanding the open enrollment period beginning this week. Get Obamacare Help Here > Question 1:  When does open enrollment start/end and how many people are expected to sign up this year? Starts November 15, 2014 and ends February 15, 2015. You must apply by December 15th if you want your coverage to begin January 1st There are no other enrollment periods unless you qualify for a special enrollment for life events such as marriage, divorce, birth of new ...

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Why a Prenup Needs to Include Debt

My team is extremely fortunate to get to work with so many successful Generation Xers.  Many of them have done phenomenally well in their careers, and then begin considering marriage at a much later stage in life toward their late 30s to early 40s. This often brings up the question when we do financial planning with them about whether or not it is a good idea to get a prenuptial agreement. There are pros and cons to getting this type of agreement, but the one important item many couples do not remember to put in these agreements when they execute them is what will happen with the debt. Most couples remember to talk about the bank accounts, the retirement accounts, the family inheritances, the real estate, and the closely held businesses.  However, most people assume that all prenuptial agreements are only dealing with people who have significant wealth.  What happens when a couple gets married and you still have outstanding ...

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10 Money Saving Deals On Veterans Day

There are so many ways we should thank our Veterans on this special day.   In this great country of ours, many restaurants and shops across American are giving back to our military and offering them some really amazing deals.  Here are ten of my favorites for Veterans to check out and please go to a great military blog http://themilitarywallet.com/veterans-day-free-meals-and-discounts/ to check out the full list. (source: TheMilitaryWallet)  Make sure to have the appropriate I.D. with you before you go and always check local stores to make sure they are participating in the program. Applebee’s, free meal, Nov. 11, 2014: Last year, Applebee’s served over one million free meals to military veterans and active service members. Applebee’s is again offering a free meal to military veterans and active-duty service members on Veterans Day, Tuesday, Nov. 11, 2014. There will be 7 entrées to choose from, beverage and gratuity not included. Military ID or proof of service required. More. California Pizza Kitchen, Nov. 11, 2014. Choose ...

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Do You Understand The Term Diversification?

Diversification is a term that is often discussed, but is still widely misunderstood amongst investors today. When the financial markets collapsed in 2008, many investors were left wondering if the opportunities to truly diversify were fewer than they once believed. Diversification: Is NOT having your money at four different banks. Many investors still do not understand how FDIC insurance works. Diversification: Is NOT having your money at four separate financial institutions. Many wealthy investors often believe they spread their diversifications risk by hiring money managers at different brokerage houses. This is hardly ever the case. Diversification: Is NOT leaving your 401(k)’s at three old employers. It’s extremely scary to see how many people buy the same mutual funds through their 401(k) at different employers and never really look at their investment strategy as a whole. Diversification: Is NOT necessarily done by buying different mutual funds or exchange traded funds from the same fund family. Diversification: Is NOT subtracting your age ...

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Did You Just Get A Raise In November

It’s pretty amazing to me how many people truly still don’t understand our payroll tax system.  When you work as a W-2 for an employer, both you and your employer are going to pay certain payroll taxes.  The two main types of taxes are the Federal Insurance Contributions Act (FICA) tax and the Medicare tax.   Both you and your employer pay 6.2% into FICA up to $117,000 this year and Medicare is a perpetuity tax at 1.45%.  In 2014, when wages, compensation, etc. get above $200,000 for an individual and $250,000 for a married couple, you will incur an additional .9% Medicare tax this year.   When your w-2 gets above $200,000, your payroll provider should be deducting that amount from your paycheck now, but it is important you double check at work. Since there are many individuals who pay their full amount into social security and their income exceeds $117,000 in a particular calendar year, unfortunately your HR department won’t ...

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I Can’t Take Money Until 59 1/2

There is an ever-changing landscape of families and individuals who are working on making work-optional by the age of 50 or 55. This doesn’t mean that they won’t continue running some small business or choosing projects to work on that they really enjoy, but at this financial juncture in their lives they are wondering how they may be able to tap into their retirement savings accounts. The biggest misconception people have about retirement savings accounts is that they simply cannot touch the money before the age of 59 ½ or they will pay significant penalties to the IRS. You’ll want to check this IRS link out. (http://1.usa.gov/1rB1ufw) Essentially, IRA owners have an option called Substantial Equal Period Payments which would allow them to withdraw money from their IRA or qualified plan before the age of 59.5 without incurring the IRS 10% early withdrawal penalty. The IRS will require individuals to continue the SEPP program for a minimum of five years ...

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7 Ways to Cut your Cellphone Bill

Today’s household has to deal with so many expenses that my parent’s generation did not have.  When I was growing up in the 70s and 80s, we did not have a cable bill, an internet bill and most certainly no cell phone bill.  Now, we cannot do without these items.  If we are going to have these extra expenses, we might as well get the best deal possible.  Consider some of these cost cutting items. Consider prepaid service. Pay-as-you-go services have gotten a lot better recently.  If you are not a heavy cell phone user you usually come out better by only paying for what you use. Check for discounts. Many carriers offer discounts if you are an employee of a company that uses their service.  Do a Google search with the carrier’s name and the words “employee discount”. Look for a family plan. If you need multiple lines, most carriers will offer a better per-line price than their standard ...

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Is it time to make an appointment with the doctor?

Getting laid off from your job can trigger a myriad of emotions. There are often important financial considerations to make during this period of time, but the number one investment step for someone to take who gets laid off is to review all of your group insurance benefits at work and determine the best course of action for this important foundation of your overall financial plan. You should immediately make any doctor and dentist visits for you and your family before you officially terminate from your company. Another smart idea is to assess how close you are to your deductibles year to date and potentially schedule any surgeries that are necessary, especially if you are getting close to the end of the year. Most large companies will allow you the opportunity to continue your coverage under COBRA, but if you work for a company of less than 20 employees you may only be eligible for state continuation. You could also ...

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5 Ways To Stop The Energy Vampires

Halloween is one of my favorite times of the year.   Handing out candy to all of the kids in my neighborhood never gets old, and at least one child each Halloween season is dressed up as a vampire.   Computers, cell phones, cable boxes, and printers can be the Vampires that suck up your money by giving you a bigger monthly electricity bill.  The EPA estimates that plugged in devices can suck up $100 a year or more to keep power going to devices not being actively used.   What are five smart money moves that can be used to stop the energy vampires from biting you? Suzanne Jones, Interim President and CEO of the Association of Energy Services Professionals says, “We estimate that by spending $500 on energy efficiency devices that more than $1,800 in energy savings can be generated.” Use A Smart Shower Head- There are many devices on the marketplace that will stop the water flow when the water ...

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