Category: Tips

Q: I'm thinking about leaving my job and starting my own business, but I'll lose my health insurance from work. Can I sign up for coverage through HealthCare.gov now, or do I have to wait until open enrollment? A: You usually need to wait until open enrollment to buy individual health insurance, but you can get coverage anytime during the year if you're eligible for a "special enrollment period." To qualify, you must have experienced one of several life changes, which include leaving your job and losing your employer health coverage; moving to a new zip code; getting married; having a baby or adopting a child; or losing health insurance because you got divorced or legally separated. If you qualify for a special enrollment period, you usually have up to 60 days following the event to enroll in a new health insurance plan. See Healthcare.gov for more information about special enrollment periods. To shop for coverage, start by going to HealthCare.gov. Depending on your state, either you'll be able to buy individual health insurance at the site or you'll find a link to your state's health insurance marketplace. If your income is less than 400% of the federal poverty level ($48,240 for singles, $64,960 for couples or $98,400 for a family of four in 2018), then you'll qualify for a subsidy to help pay the premiums of a policy you purchase through HealthCare.gov or your state's health insurance marketplace. Use the tool at HealthCare.gov to see if you qualify for a subsidy. If your income is higher than the cut-off point, you can still buy a policy through the marketplace, but you won't receive a subsidy. You may also want to compare the costs and coverage of policies offered through a health care exchange to policies that are being sold outside of the marketplace, such as directly from an insurer, through an agent or at a website such as eHealthInsurance.com. Your state insurance department may also have information about health insurance available in your state. See www.naic.org/map for links. Another option is to continue your current coverage under COBRA. That's the federal law that allows people to stay on their employer's plan for up to 18 months after leaving a job. COBRA coverage tends to cost more than individual insurance because you have to pay both the employer's and the employee's share of the cost. You would, however, have the same provider network and cost-sharing arrangements that you have now. Ask your employer about your options. People who want to change health insurance plans midyear and don't qualify for a special enrollment period need to wait until the next open-enrollment period to buy a new policy. Open enrollment for coverage starting in 2018 ran from November 1 to December 15, 2017. No open-enrollment period has been set for choosing 2019 coverage, although it may be similar to last year's. Some states also have longer enrollment periods. Source: Kiplinger.com

In the 1930s, the US government began issuing social security cards as a means to track retirement and disability benefits to which individuals were entitled. Very quickly, businesses and agencies started using them for identification purposes. It was just so convenient that every US citizen and permanent resident had one. But with this proliferation of uses for social security numbers came a steep increase in identity theft.  Once a thief has your social security number, it’s easy to start opening financial accounts in your name. So, where is the sweet spot between giving businesses and agencies the information they need and protecting your identity? Who can ask for a social security number – and who can’t? Keep reading to learn more from our financial advisors in LaCrosse. Situations where you legally must provide your Social Security number There are times when you will need to give your social security number. These include: Anything that requires tax reporting, such as employers reporting your income. Banks for monetary transactions such as getting a loan or opening a line of credit. This can include other entities where you open a line of credit such as a phone contract. Real estate transactions. Government agencies (both state and federal) that provide benefits or services such as administration of taxes, driver’s licenses, child support enforcement, Medicaid, food stamps and unemployment compensation, student loans, and workers’ compensation. Making cash transactions over $10,000. When working with an investment advisor. Applying for group health insurance through an employer. Situations where you don’t have to provide your Social Security number Businesses will often ask for your social security number because it’s an easy way to track your account. It’s also an easy way to track you down for collection purposes.  That doesn’t mean they really need it or should have it. Here are some examples. Business over phone or email Refuse to give your social security number when someone representing themselves as an agent of a business, even one you use, asks for it during a call or email you did not initiate.  This is a common way for scammers to steal identities. On a job application Although employers can ask for your social security number, they should not be asking for it on a job application before you are hired. Leave it blank until you accept an offer. The doctor’s office When you visit a new doctor, the staff typically hands you a form to complete. Often, that form asks for a social security number. There is usually no reason that they need it, and you’re better off leaving it blank. School enrollment Public schools cannot require the social security number of a child or their parents to enroll. You can use other documentation for proof of identity. You also aren’t required to provide a social security number to enroll in college.  However, be aware that applying for financial aid of any kind will require a social security number.  Ask these questions The more you spread your social security number around, the more you increase your chances of identity theft. If you’re concerned about whether or not a business can ask for your social security number, ask these questions: Why do you need my social security number? How will you use my social security number? Where and how are you storing my social security number? Is there another form of identification you would accept instead? What will happen if I do not provide my social security number? What may happen if you refuse It’s not illegal for a business to ask you for your social security number, even if it’s not legally required. If they will not accept another form of identification, they may refuse to provide service. Keep your financial future safe with Advisors Management Group If you have more questions about who can legally ask for your social security number or keeping your financial data safe, don’t hesitate to contact us now. A knowledgeable financial advisor in Eau Claire or a financial advisor in Green Bay can answer your questions and help you make sound financial decisions. We have offices conveniently located in La Crosse (608.782.0200), Eau Claire (715.834.9512), and Green Bay (920.434.2192), Wisconsin. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin. Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security. Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses. Please do not send orders via email as they are not binding and cannot be acted upon. Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services. Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Getting a credit card an easy way to build your credit, but you should still be careful when it comes to spending and swiping. Kimberly Palmer, credit card and banking expert from Nerdwallet, shares some pros and cons of using plastic. PRO: Credit cards can help build your credit history “Credit cards are actually one of the simplest and most straightforward ways to build credit,’ Palmer says. “Building your credit history when you’re young is so important because it can really affect so much of what you do in your financial life.” Showing that you can responsibly handle credit will make it easier for you to take out a loan — for your education, a car, or a new home — down the line. But in order to build a strong credit history, be sure to pay off your bills on time every month. “The lender you’re considering using will always check your credit history to see how you’ve paid off your bills each month,” Palmer says. “It’s such an important thing to build up [your credit history].” CON: Late payments can snowball Palmer cautions credit card users to not see credit cards as “free money.” “It’s really important to understand that if you don’t pay off the balance at the end of every month, then really quickly fees and interest can accrue and you can end up building up a lot of debt,” she says. PRO: Rewards and perks When you sign up for a credit card, Palmer recommends researching all the benefits that come with it. Aside from earning points and getting cash-back deals, there might be other advantages that come with your card. “Some of the perks that come with credit cards are things like renters’ insurance or car insurance. Some cards come with purchase protection, so if you buy something you can get your money back. There’s also things like fraud protection, which can help you avoid worrying about losing money,” Palmer says. CON: Leaving money on the table If you avoid researching the benefits and perks of offered by your card, you could be leaving money on the table, Palmer says. “Credit cards will reward you for spending on different categories and you want to make sure you’re maximizing that,” Palmer says. “Cards are so different from each other so you first have to really think about how you spend the money because you can actually get rewarded based on how you spend,” she says. Look for cards that offer the best benefits for the purchases you make. For example, if you use your card for groceries, find cards that offer a high percentage back on those purchases. Or if you want to travel, find a card that offers travel deals or rewards points you can cash in later. PRO: Using your card as a budgeting tool Palmer says your credit card can be an easy way to organize your finances and see where your money is going each month. “Every time you use it, it gets logged on to your account, so you can look up your statement and review where you spent money,” Palmer says. “You can also organize that spending by category so you can see the percentage you’re spending at restaurants or on travel [for example].” Seeing where you spend can help you determine if you need to cut back. “It’s a really useful way of getting organized with your finances without having to collect receipts,” Palmer says. CON: The temptation to overspend Palmer cautions that if people find themselves overusing their cards to pay with cash instead. “If you really need to exert more self-discipline, and it’s just too tempting to pull out that credit card and spend — even when you know you shouldn’t — that’s a red flag,” Palmer says. Source: Finance.Yahoo.com

According to the Huntington Bank Backpack Index, the cost of school supplies increased 88% from 2007 to 2016, and their recently released 2017 report anticipates increases of 1.0% for elementary and 4.6% for middle schoolers this coming school year. Even so, there are reasons that parents can feel good about back-to-school shopping: 1.  It’s an exciting time of year, and parents can share in their children’s enthusiasm. 2.  It’s a chance to spend time with your kids while teaching them smart shopping habits. 3.  It’s an opportunity for what I call “painless savings:” if you consistently watch your spending on “the small stuff” like school supplies, groceries, and clothing, over time you can significantly increase in your overall savings. To maximize the learning experience, involve your kids in the back-to-school shopping process. Start by reading this article with them. Together, identify your spending goals and decide where you’ll do your shopping. Discuss a strategy for spending on “extra” things that are not on the shopping list. For example, when your child can’t live without a new tablet, even though you think her current one is fine, who gets final say? Here are 8 more tips your family can consider during this back-to-school season: 1.  Visit your local brick and mortar retailers. Stores such as Staples, Office Depot, and Walmart offer competitive bargains versus internet-only retailers. Look for specials and door busters, but try not to let good prices lure you into spending on things you don’t need. Also, don't forget about local discount retailers who have low pricing year-round, such as Dollar Store or Five Below. 2.  Shop during your state’s sales-tax holiday. Many states offer a shopping day or weekend during which they waive state sales tax. On these days, you can avoid state and local taxes, which can approach 10% in some states. 3.  Use store coupons and rewards programs. Before heading to a retailer, check your mailbox for weekly coupons and store websites for printable coupons. Art supply stores such as Michaels often have coupons in the Sunday paper. Or simply download them onto your smart phone. These can mean big savings on your more expensive items. Coupons may even be available to pick up “in store;” so don’t forget to ask once you’re there. You can also sign up for a store loyalty program where you can earn rewards points toward future purchases. 4.  Combine your deals. If you find a great sale at your local retailer, shop during a sales tax exemption period, use some coupons, and earn rewards points, you have just hit the grand slam of savings! If you pay with a credit card that gives you cash back, you can save even more—just don’t let those credit card balances run up and accrue interest charges. 5.  Online shopping is still the biggest timesaver, and we all know time is money. In addition to Amazon, there are other web-based competitors such as Oriental Trading Company and eBay. If your family feels that time is your scarcest resource, searching for deals online may still be your best way to save both time and money. 6.  Consider taking advantage of any pre-packaged, school supplies program offered by your school district. This usually involves paying online for a tailored packet of school supplies that is delivered to the school, ready for use. These programs can offer competitive pricing and save you the time and effort of shopping online or driving to the store. 7.  Buy used textbooks or download digital textbooks. If buying used books makes you cringe because you're concerned about the quality of the retailer, be assured that both Barnes and Noble and Amazon are dominant in this space. But for really deep values, you may want to look at other providers—just do some research on these lesser-known retailers before sending them your money. 8.  The best way to save may be not to spend at all; you may already have on hand some of the things on your shopping list. Look around your house before you shop. I’m a big believer in the power of spending less on the small stuff whenever you can in order to accrue big savings in the long run. I’ve written more about this idea of “painless savings” in Countdown To Financial Freedom. The earlier in life that young people begin to apply this saving strategy, the more they will benefit in terms of the compounding growth potential of the money they are able to save. That is how the back-to-school shopping process can positively influence your children’s financial education and their future net worth. And that is something we can all feel good about! Source: Forbes.com