Monthly Archives: March 2019

Some types of traffic violations can drive your car insurance rate dramatically higher. Accidentally run a red light or drive a little to fast, and you may get a ticket. But that is just the start of your worries. Some traffic violations can drive your car insurance premium dramatically higher. In fact, the money you lose in higher policy costs can dwarf the expense of the ticket itself, according to a study from a car insurance comparison tool The Zebra.

For example, blow through a red light, and your rate could jump 22.7 percent. That could cost you an extra $333 in your annual premium. Here are the facts:

• Failing to wear a seat belt: 4 percent increase, extra $59
• Not-at-fault accident: 6.7 percent increase, extra $98
• Texting while driving: 19.7 percent increase, extra $290
• Failing to stop at a red light: 22.7 percent increase, extra $333
• Speeding: 23.2 percent increase, extra $341
• Improper passing: 23.4 percent increase, extra $344
• At-fault accident: 42 percent increase, extra $617
• DUI: 73.9 percent increase, extra $1,086
• Hit and run: 82.2 percent increase, extra $1,209

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It’s been quite a year for hip hop artist 21 Savage. Despite dealing with immigration issues, the 21 Savage, real name, Sheyaa Bin Abraham-Joseph, has managed to remain at the top of the charts as a staple of the genre. While he may be best known for lyrics about his car accumulation and his famous “in my bank account,” he’s putting his money where his mouth is (quite literally) and using his fame (as well as his financial knowledge) to help youth develop sound financial goals, increase financial literacy, and assist with job and college placements. During an appearance in Georgia at a local elementary school, 21 Savage led a mini-workshop for delighted 4th graders, where he talked about the value of financial education and literacy. He also announced an upcoming event and pledged to help each child open his or her own first bank account- complete with $100 in it. As for the artist, developing a sound financial future is a cause near to his heart.

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Two consumer giants plan to start working together to sell consumer data to banks, the latest attempt to feed banks appetite for more information to consumers. Both companies already sell their services to banks, but now their sales employees will pitch each other’s services as well. Equifax has lost business since the 2017 breach, but the company has said it “has made enormous progress.” Equifax remains under investigation by federal and state legislators. This breach led to legislation that allows consumers to “freeze” their credit files at no cost. Yes, for FREE! Contact Experian, Transunion and Equifax for more information.

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To prevent identity theft, leave these three items at home and not in your purse. They are:

First, receipts may often have your personal identification such as your credit card number. Take one check if needed for a special purchase.

Second, you should never carry around your checkbook. Thieves can may fraudulent purchases from your account.

Third, do not keep your passport in your purse for identification. When traveling abroad, make a photo copy and leave your passport in the hotel safe.

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Recently, there has been a spike in renter evictions around the country. Rental costs now take more than 30% of an individuals monthly income. ‘Fragile renters’ frequently live from paycheck to paycheck and are likely to be evicted more quickly than ever before. For example in Milwaukee, Wisconsin – evictions have increased 3 times the number in previous years. Also, the evictions are higher for African Americans than the rest of the population. If you are concerned about this issue, contact your local housing authority to learn about your rights. An eviction can wreak havoc on your credit report and will likely remain for up to seven years. Please note that an eviction can turn into homelessness for those living on the financial edge.

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Arguments about money hamper many marriages. In fact, couples fight about money twice as much ad they fight about sex. And the challenges can actually start even before you say “I do”. Items to discuss before marriage:

1. debt – school loans, car loans, credit cards, gambling habits, or taxes owed etc.
2. Personality – the spender vs. saver roles as a couple
3. Power Play – He works – she doesn’t vs. who will make the money decisions
4. Mine, Yours, Ours – did you own property and assets prior to marriage?
5. Children – is child support or spousal support involved?
6. Extended Family – do you lend or borrow from family members? If so, how does your spouse feel about this?

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If you have a credit card, you should, theoretically, know how missing a payment or paying off less than your total balance each month can lead to a debt spiral. The interest rate on credit cards is very high compared to other financial products, and it compounds when you don’t pay your balance off in full each month.

And credit cards make it easy to fall into that debt spiral. One way they do this is that your issuer will display the “minimum balance due” each month prominently on your bill/online account, and if you don’t know better and continually pay off just the minimum, you can end up owing a lot more money over the long term.

When credit card companies give you more flexibility by paying the minimum balance, it is really a way for them to profit from you. It’s easy to spend more than you can afford, but you should only charge as much as you can pay off in a single month. Credit cards companies are counting on the fact that you won’t.

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New research shows that real estate is both a better and safer investment than previously believed. There are pro’s and con’s to buying a home. First, do your research to see what works best for you. If the average rent in your area is in the same ballpark as the average cost of a monthly mortgage in your area – purchasing a home maybe better for you. Having enough for a down payment would be your biggest hurdle to home ownership.

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The 2019 Tax Cut and Jobs Act promised to, well, cut taxes. For many, it does. But a new limit on the amount of state and local levies that can be deducted has costly and confounding implications for some, especially in high-income, high-property -tax places like the New York City area. Nearly, 11 million will be affected as they will be limited on deducting state and local taxes on their federal income tax. See a tax professional to learn how this may affect you.

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The government has updated a rule that governs worker and retiree pension plans. New released guidelines in March now allow employers to offer a lump-sum payout to Americans in order to buy them out of future annuity payments. The Obama Administration said it would stop allowing lump-sum payments, which resulted in a decision among most employers to stops offering them. This was a move designed to protect retirees, who- under a defined benefits plan – receive guaranteed payments for life.

Now, if a retiree receives a lump-sum for life they may be short changed in the long run. Discuss the pro’s and con’s with your accountant to understand what this means for you. Making the right investment means you will have money throughout your life.

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